IndusInd Bank Shares Plummet Over 5% Following Rs 30.15 Crore GST Fine
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Synopsis
IndusInd Bank shares fell over 5% after a penalty of Rs 30.15 crore was imposed by GST authorities in Thane, Maharashtra, due to compliance issues. The bank is considering an appeal against the ruling and faces scrutiny over its derivatives portfolio.
Key Takeaways
- Shares dropped over 5% after penalty announcement.
- Penalty of Rs 30.15 crore from GST authorities.
- IndusInd Bank considering legal appeal.
- Previous irregularities raised investor concerns.
- Bank remains profitable projection for March 2025.
Mumbai, March 25 (NationPress) Shares of IndusInd Bank experienced a decline of over 5 percent on Tuesday after the bank disclosed that GST authorities in Thane, Maharashtra imposed a fine exceeding Rs 30.15 crore due to multiple compliance issues.
The stock fell by as much as 5.12 percent, closing at Rs 635.15 per share on the National Stock Exchange (NSE).
This private lender, currently under investigation for inconsistencies in its derivatives portfolio, mentioned it is contemplating an appeal against the GST ruling.
In a regulatory update, IndusInd Bank indicated that the penalty was levied by the Joint Commissioner of CGST & Central Excise, Thane Commissionerate. The bank is also evaluating legal avenues to contest the ruling.
“...we herewith announce that a penalty of Rs. 30,15,18,000 has been imposed on the Bank by the Joint Commissioner of CGST & Central Excise, Thane Commissionerate for various GST-related matters. The Bank will consider filing an appeal against this order,” the private lender stated in its regulatory filing.
IndusInd Bank shares have faced consistent pressure since the institution recently revealed irregularities in its derivatives transactions.
This disclosure raised concerns regarding a possible impact on the bank’s finances, estimated at around 2.35 percent of its net worth.
In the aftermath of this announcement, IndusInd Bank stock suffered its most significant single-day drop, plummeting 27 percent on March 11.
Despite these challenges, the bank's management has reassured investors of a projected profitability in the March 2025 quarter and the upcoming fiscal year.
The Reserve Bank of India (RBI) has also confirmed that IndusInd Bank remains adequately capitalized and that its financial standing is robust.
Recently, IndusInd Bank’s stock has seen a marked decline. Over the past month, its share price has decreased by 35 percent, and it has fallen 30 percent on a year-to-date (YTD) basis.
In the last six months, the stock has dropped 54 percent, and in the past two years, it has slipped by 34 percent.
