IndusInd Bank Hit with Rs. 21.62 Crore GST Demand Notice for Alleged Short Payment

IndusInd Bank has received a Goods and Services Tax (GST) demand notice amounting to Rs. 21.62 crore from the Deputy Commissioner of State Tax in Ahmedabad, Gujarat. The notice cites alleged short payment of GST and outlines various irregularities. The total liability includes penalties. In response, the bank has announced plans to explore filing an appeal against the order.

This development comes on the heels of IndusInd Bank's recent financial disclosures. In the third quarter ending December 31, 2024, the bank reported a 39% decline in net profit, totaling Rs. 1,401 crore, slightly below analyst expectations.

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The decrease was primarily due to an 87% surge in provisions for bad loans, particularly in the microfinance sector, which constitutes 9% of the bank's loan portfolio. The gross non-performing assets ratio also deteriorated to 2.25% from 2.11% in the previous quarter.

On February 24, 2025, IndusInd Bank revised its fixed deposit interest rates for amounts below Rs. 3 crore. The highest rate is now 7.75% for general customers and 8.25% for senior citizens on deposits with tenures ranging from one to two years. This adjustment follows the Reserve Bank of India's recent repo rate cut earlier in the month.

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About Bank

IndusInd Bank Limited, headquartered in Mumbai, is a prominent financial services institution in India, offering a wide range of personal and business banking products, including savings and current accounts, fixed deposits, loans, and NRI banking services.

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