The Income Tax Department issued a tax demand notice to the Indian Bank mandating payment of ₹873.15 crore for its assessment period in 2017-18. A notice issued under Section 156 of the Income Tax Act, 1961, arrived at the Indian Bank on March 26, 2025. The bank challenges various tax disallowances that form the basis of this demand.
In response to the notice, Indian Bank has stated that it will file an appeal before the appropriate appellate authority. The bank believes it possesses sufficient legal evidence to challenge the disputed request so the entire demand should be revised or eliminated. Indian Bank bases its optimistic outlook on earlier decisions made by appeal authorities.
The bank has made it clear that it does not expect the tax issue to impact its financial performance, operations, or day-to-day activities. As a result Indian Bank has assured shareholders and investors that business activities will continue without disruption.
According to the institution's statements, the substantial payment demand Indian Bank faces does not affect its financial stability. The bank stated in a regulatory filing that the issue will unlikely affect its overall operations.
The demand arises from certain disallowances, though the bank has not provided specific details regarding their nature. Indian Bank has also indicated that it will continue to operate as usual while it navigates the appeals process.
The bank experienced only a slight decrease in stock value after releasing the news announcement. The Indian Bank stock finished at ₹543.00 in March 26 after falling by ₹0.05 which represented a minor 0.0092% drop from the previous trading day's closing price.