IndusInd Bank Drops Over 5% After Rs 30.15-cr GST penalty

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).

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.