Shares of IndusInd Bank Drop Following Rs 30.15 Crore GST Penalty
Following the private sector lender’s statement that it has been punished with a penalty of Rs 30.15 crore, investors will watch IndusInd Bank’s shares on Tuesday.
IndusInd Bank Share:
Following the private sector lender’s announcement that it had been fined Rs 30.15 crore by the Joint Commissioner of CGST & Central Excise, Thane Commissionerate, for several GST-related issues under Section 122(1)(ii) of the CGST Act, 2017, IndusInd Bank’s shares dropped more than 1% on Tuesday morning trading.
“The Joint Commissioner of CGST & Central Excise, Thane Commissionerate, has imposed a penalty of ₹30,15,18,000 on the Bank for various GST issues,” IndusInd Bank said in a regulatory filing. The Bank will investigate the possibility of appealing the order.
The bank said it is considering its legal options to contest the penalty, but it did not elaborate on the specifics of the GST problems. According to IndusInd Bank’s third-quarter statistics, net profit fell 39% yearly to Rs 1,402.3 crore from Rs 2,301 crore in the same quarter the previous year.
One important indicator of profitability, net interest income (NII), decreased 1.3% to Rs 5,228.1 crore from Rs 5,295.6 crore in the previous year. Additionally, this was less than the Rs 5,343 crore experts had predicted.
The bank experienced an increase in poor loans in terms of asset quality. Compared to the previous quarter, (GNPA) climbed to Rs 8,375.3 crore from Rs 7,638.5 crore. As a proportion of total advances, the GNPA ratio increased from 2.11% in Q2 FY25 to 2.25%. In a sequential increase, net non-performing assets (NPAs) climbed from Rs 2,282 crore to Rs 2,495.8 crore, while the NNPA ratio jumped from 0.64% to 0.68%.
