GST Official Search 3 ICICI Bank Offices; Probe Underway

The Maharashtra GST department started a search operation at three ICICI Bank offices, the second-largest private lender of India. The raids, which began on December 4, are part of an ongoing investigation of Sections 67(1) and (2) of the Maharashtra GST Act, 2017. While the bank would not provide specifics, it did confirm complete cooperation with the authorities.

“Please take note that on December 4, 2024, GST authorities conducted a search of three ICICI Bank offices. The processes are ongoing, and the Bank is fully cooperating in giving data as requested,” the bank informed exchanges late on December 4.

Neither the bank nor the GST department gave more information about the purpose of the search. Market watchers are keeping a tight eye on ICICI Bank’s stock for any potential reactions at the opening bell. On the NYSE, the bank’s ADR closed up 0.36% on December 4, however it fell dramatically from intraday highs due to increasing trading volumes.

This development occurs at a time when ICICI Bank is riding high on its financial performance. In the September quarter, the lender’s net profit increased by 14.5% year on year to Rs.11,746 crore. Net Interest Income (NII) increased by 9.5% YoY to Rs.20,048 crore. The bank’s gross NPA ratio improved to 1.97% as of September 30, down from 2.15% a quarter ago. The net NPA ratio held unchanged at 0.42%.

ICICI Bank’s resiliency distinguishes it from rivals such as Kotak Mahindra Bank and IndusInd Bank, which are dealing with mounting asset stress. The bank owes its success to careful underwriting, selective lending, and strong risk management methods.

Despite the ongoing investigation, ICICI Bank’s stock has risen 32% year to date, indicating investor confidence in the company’s operations and strategy.