Jammu and Kashmir Bank‘s stock price experienced a decline during Wednesday’s trading session following the receipt of a significant GST notice amounting to Rs 16,000 crore, which includes both GST dues and penalties.
At one point, the bank’s share price hit an intraday low of Rs 99.26 on the NSE, reflecting a drop of 3.95%. However, it later recovered slightly, with the stock standing at Rs 101.35, down by 1.94% around 11:50 AM.
According to a regulatory filing by the bank, it received a notice on February 4, 2025, from the Joint Commissioner, Central GST Commissionerate, Jammu. The notice demands a GST liability of Rs 8,130.66 crore, along with interest and an identical penalty amount.
Despite this substantial demand, Jammu and Kashmir Bank, which has a market capitalization of Rs 11,273.91 crore, reassured investors by stating that the notice would not significantly impact its financial stability, operations, or overall business performance.
The bank also reported a 26% year-on-year increase in net profit for the December 2024 quarter, which rose to Rs 532 crore compared to Rs 421 crore in the same period of the previous year. Its net interest margin for the quarter increased to 4.04%, a 14-basis-point improvement from the prior quarter.
