Regulatory / Tax Benefit
Federal Bank Receives ₹489.6 Cr Income Tax Refund Order
NSE
federalbnk
BSE
500469
Federal Bank has received an income tax refund order of ₹489.6 Cr (including interest) for AY 2015-16 and AY 2017-18.
PRICE-SENSITIVE TRIGGER
Event: Income Tax Refund Order Received
Type: Regulatory / Tax Benefit
Impact: Positive
Immediate Effect: Improves liquidity position and may support earnings / capital adequacy.
Assessment Years
AY 2015-16 & 2017-18
Authority
Income Tax Department (Kochi)
Refund Amount
₹489,60,20,918
What Happened ?
Federal Bank received orders from the Income Tax Department giving effect to a prior Income Tax Appellate Tribunal (ITAT) ruling.
Key points:
- Refund pertains to past assessment years
- Includes interest under Section 244A
- Order issued under Section 254 of the Income Tax Act
This confirms a favorable tax resolution for the bank.
Detailed breakdwon
Authority Involved
- Income Tax Department, Corporate Circle 2(1), Kochi
Timeline
- Order received: March 26, 2026
Nature fo Event
- Refund following ITAT order implementation
Additional notes
- No litigation risk remaining for this case
- Cash inflow expected (if not already received)
Management commentary
- Disclosure of refund as per regulatory requirement
- Based on ITAT order implementation
Risk Analysis
Key Risks
- Minimal risk (favorable outcome)
- Timing of actual cash receipt
Worst Case Scenario
Delays in refund processing
Risk Level: Low
Reason:
- Favorable resolution already achieved
- No downside risk indicated
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