Mumbai: IndusInd Bank’s stock witnessed a sharp decline of over 5% on Tuesday after the private lender disclosed a ₹30.15 crore penalty imposed by the Joint Commissioner of CGST & Central Excise, Thane Commissionerate. The penalty, related to various Goods and Services Tax (GST) compliance issues, has added to the bank’s ongoing financial challenges.
The bank’s shares fell as much as 5.32%, reaching ₹633.55 per share on the Bombay Stock Exchange (BSE). In a regulatory filing on March 24, IndusInd Bank stated, “A penalty of ₹30,15,18,000 has been imposed on the Bank by the Joint Commissioner of CGST & Central Excise, Thane Commissionerate for various GST issues. The Bank will explore filing an appeal against the order.”
This development comes amid an already turbulent period for IndusInd Bank, which is grappling with discrepancies in its derivatives portfolio. The revelation of these discrepancies earlier this month led to a historic 27% single-day drop in the bank’s stock price. The derivatives issue is expected to impact the bank’s net worth by approximately 2.35%.
Despite these setbacks, the Reserve Bank of India (RBI) has assured that IndusInd Bank remains well-capitalized and financially stable. The bank’s management has also expressed confidence in posting profits for the March 2025 quarter and the upcoming financial year.
Investor sentiment, however, remains cautious. Over the past month, IndusInd Bank’s share price has plunged 35%, and it is down 30% on a year-to-date basis. The stock has dropped 54% in the last six months and 34% over the past two years, reflecting a prolonged downtrend.
As the bank navigates these challenges, market analysts will closely monitor its appeal against the GST penalty and the resolution of its derivatives portfolio discrepancies.
