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IndusInd Bank Receives ₹30.15 Crore GST Penalty Order for Multiple Issues

Written by: Team Angel OneUpdated on: Mar 25, 2025, 3:05 PM IST
IndusInd Bank received a ₹30.15 crore GST penalty, with shares falling and weak Q3 numbers adding to pressure amid rising bad loans and declining profit.
IndusInd Bank Receives ₹30.15 Crore GST Penalty Order for Multiple Issues
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IndusInd Bank Ltd has received a penalty order of ₹30.15 crore from the Joint Commissioner of CGST & Central Excise, Thane Commissionerate. The order was issued on March 24, 2025, under Section 122(1)(ii) of the CGST Act, 2017, citing various GST-related issues. The bank stated in a regulatory filing that it is evaluating legal options and may file an appeal against the order.

As of 10:51 AM on March 25, IndusInd Bank Ltd was trading at ₹644.15, down ₹25.30 or 3.78% for the day. Over the past month, the stock has declined by 37.72%, and it has fallen 55.25% over the last six months.

Nature of Action and Disclosure

The penalty is solely on account of GST-related matters. The bank has not disclosed specific details regarding the nature of the GST issues involved. As required under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the disclosure was made to the stock exchanges and is also available on the bank’s official website.

The penalty amount is ₹30,15,18,000. The bank has not indicated any operational impact arising from the order. The financial implication is limited to the penalty amount.

Q3FY25Financials

For the third quarter, IndusInd Bank reported a net profit of ₹1,402.3 crore, compared to ₹2,301 crore in the same quarter last year. This marks a year-on-year decline of 39%.

Net Interest Income (NII) stood at ₹5,228.1 crore, down 1.3% from ₹5,295.6 crore in the corresponding quarter of the previous year.

Asset Quality 

The bank reported an increase in bad loans during the quarter. Gross Non-Performing Assets (GNPA) rose to ₹8,375.3 crore from ₹7,638.5 crore in the previous quarter. The GNPA ratio increased to 2.25%, compared to 2.11% in Q2 FY25.

Net Non-Performing Assets (NNPA) rose to ₹2,495.8 crore from ₹2,282 crore. The NNPA ratio increased to 0.68% from 0.64%.

Conclusion 

The bank has not indicated any immediate operational disruptions due to the penalty. However, it is currently assessing legal options and may choose to challenge the order. Further updates are expected through regulatory filings as the matter progresses.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Mar 25, 2025, 3:05 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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