Kolkata: Private sector Federal Bank will receive a tax refund of Rs 686 crore following the successful resolution of a long-standing tax matter, the bank announced on Thursday.
This will have significant financial implications for the bank’s profitability in the next quarter, people aware of the matter said. To put this in context, the bank earned Rs 1,041 crore in the third quarter.
The refund pertains to assessment years 2012–13 and 2013–14, including interest, the bank said in a stock exchange notice.
The bank received the income tax order to this effect on February 18, giving effect to the Income Tax Appellate Tribunal order dated August 13, 2024, through subsequent orders dated January 23 and January 28 this year.