Trouble-hit IndusInd Bank slapped with Rs 30.15 crore GST fine

The private lender, which is already under scrutiny for discrepancies in its derivatives portfolio, stated it is considering filing an appeal against the GST order

Mumbai: IndusInd Bank’s share fell over 5 per cent on Tuesday after the bank informed that GST authorities in Thane, Maharashtra, had imposed a penalty of more than Rs 30.15 crore due to several compliance issues.

The stock declined as much as 5.12 per cent to close at Rs 635.15 apiece on the National Stock Exchange (NSE).

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The private lender, which is already under scrutiny for discrepancies in its derivatives portfolio, stated that it is considering filing an appeal against the GST order.

In a regulatory filing, IndusInd Bank said that the penalty had been imposed by the Joint Commissioner of CGST & Central Excise, Thane Commissionerate. The bank added that it is exploring legal options to challenge the decision.

“…we hereby inform that a penalty of Rs 30,15,18,000 has been imposed on the Bank by Joint Commissioner of CGST & Central Excise, Thane Commissionerate for various GST issues. The Bank will explore filing of appeal against the order,” the private lender said in its filing.

IndusInd Bank shares have been under pressure since the lender recently disclosed irregularities in its derivatives transactions. This revelation led to concerns about a potential impact on the bank’s financials, amounting to around 2.35 per cent of its net worth.

Following this disclosure, IndusInd Bank stock experienced its worst single-day fall, plunging 27 per cent on March 11.

Despite the setbacks, the bank’s management has reassured investors that it expects to remain profitable in the March 2025 quarter and the upcoming financial year.

The Reserve Bank of India (RBI) also issued a statement affirming that IndusInd Bank remains well-capitalised and that its financial position is stable.

IndusInd Bank’s stock has seen a steep decline in recent months. Over the past month, its share price has dropped 35 per cent, while it is down 30 per cent on a year-to-date (YTD) basis.

In the last six months, the stock has fallen 54 per cent, and over the past two years, it has declined by 34 per cent.