ICICI Bank Faces ₹153 Crore GST Demand, Penalty from Maharashtra Authorities

ICICI Bank’s share price traded 0.06% higher to ₹1,265.80 at 12:30 PM on the NSE. The stock opened at ₹1,268.05 higher than ₹1,265.05 at the previous close. The share had declined more than 1% in the previous trading session.

GST Demand Details

ICICI Bank Limited has received 2 separate orders from the Maharashtra Goods and Services Tax (GST) Department, totalling ₹102.46 crore, which includes GST demand, penalty, and applicable interest.

On January 3, 2025, the first order raised a GST demand of ₹26.12 crore, along with an equivalent penalty and interest charges. The second order, received later that day involved a GST demand of ₹50.38 crore, similarly accompanied by an equal penalty and interest.

These demands stem from alleged violations related to the levy of tax under the Central Goods and Services Tax Act (CGST Act) and the Integrated Goods and Services Tax Act (IGST Act). ICICI Bank has confirmed it is evaluating the contents of both orders and plans to contest them through appeals within the prescribed timelines.

While the total financial impact of the two orders amounts to ₹102.46 crore, including penalties, the bank has assured stakeholders that it is committed to resolving the issue without causing any operational disruptions.

Q2 FY25 Financial Highlights

ICICI Bank reported a strong performance for Q2 FY25, with net profit rising 14.5% year-on-year (Y-o-Y) to ₹11,746 crore, driven by solid growth in non-interest income, fee income, and treasury gains.

The bank’s net interest income (NII) grew by 9.5% Y-o-Y to ₹20,048 crore, although its net interest margin (NIM) dipped slightly to 4.27% in Q2 FY25 from 4.53% in Q2 FY24, and 4.36% in Q1 FY25. Despite this, ICICI Bank expects NIM to remain stable until the interest rate cycle turns.

Provisions for the quarter were reduced sequentially to ₹1,233 crore, reflecting a continued focus on maintaining asset quality. The gross non-performing asset (NPA) ratio improved to 1.97%, down from 2.48% a year ago, while the net NPA ratio declined to 0.42% from 0.43% in both Q1 FY25 and Q2 FY24.

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