IndusInd Bank gets GST Penalty worth Rs.30.15 Crore on Various GST issues

IndusInd Bank Ltd, a private sector lender, announced on Monday (March 24) that the Joint Commissioner of CGST and Central Excise, Thane Commissionerate, levied a Rs.30.15 crore penalty for various GST-related violations under Section 122(1)(ii) of the CGST Act of 2017.

“We hereby tell you that the Joint Commissioner of CGST and Central Excise, Thane Commissionerate, has imposed a penalty of Rs.30,15,18,000 on the Bank for numerous GST issues. IndusInd Bank will consider pursuing an appeal against the order,” according to a regulatory filing of Induslnd Bank.

The bank has announced that it will consider filing an appeal against the order. While the nature of the GST concerns was not disclosed, IndusInd Bank stated that it is considering legal alternatives to challenges the penalty.

IndusInd Bank’s third-quarter net profit fell 39% to ₹1,402.3 crore from ₹2,301 crore the previous year. However, the result exceeded CNBC-TV18’s poll prediction of Rs.1,271 crore.

Net interest income (NII), a crucial measure of a bank’s profitability, declined 1.3% to Rs.5,228.1 crore from Rs.5,295.6 crore last year. Analysts expected NII to be around Rs.5,343 crore, but the actual figure was lower.

On the asset quality front, the bank experienced an increase in bad loans. Gross non-performing assets (GNPA) rose to Rs.8,375.3 crore from ₹7,638.5 crore the previous quarter.

As a percentage of total advances, the GNPA ratio was 2.25%, down from 2.11% in Q2 FY25. Net NPAs increased to Rs.2,495.8 crore from ₹2,282 crore sequentially, with the NNPA ratio increasing to 0.68% from 0.64%.

IndusInd Bank Ltd shares closed at Rs.669.15, down Rs.16.60, or 2.42%, on the BSE.