Jammu and Kashmir Bank Shares Dip Amidst ₹16,000 Crore GST Notice

Jammu and Kashmir Bank witnessed a decline in its share price during Wednesday’s trading session following the receipt of a significant ₹16,000 crore GST demand. The notice, issued by the Joint Commissioner of Central GST Commissionerate, Jammu, includes both tax liability and a penalty amount.

Market Reaction to the GST Notice

The bank has received a demand notice dated February 4, 2025, outlining GST liability of ₹8,130 crore along with an equal penalty of ₹8,130 crore. Despite the magnitude of the demand, the bank has clarified in a regulatory filing that the notice will not have any material impact on its financial position, operations, or overall business activities.

Financial Performance and Outlook

The bank also reported financial results for the December 2024 quarter. It recorded a 26% year-on-year rise in net profit, reaching ₹532 crore. Additionally, the net interest margin improved to 4.04%, reflecting a 14-basis-point increase sequentially.

J&K Bank Share Performance

As of February 05, 2025, at 2:30 PM, the shares of J&K Bank are trading at ₹101.30 per share, reflecting a decline of 2.12% from its previous day’s closing price. While over the month, the stock has surged over 3%. The stock has a 52-week high and low of ₹152.50 and ₹86.61 per share respectively

Conclusion

Jammu and Kashmir Bank’s stock experienced volatility following the GST notice but managed to recover some losses. While the bank maintains that the order will not materially affect its business, market participants remain watchful of further developments.

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