GST authorities of Maharashtra State government have initiated search at three offices of second-largest private lender ICICI Bank on December 4, and the proceedings are on-going, with the bank co-operating in providing data as requested.
"Please note that on December 4, 2024, GST authorities initiated search at three offices of ICICI Bank. The proceedings are on-going and the Bank is co-operating fully in providing data as per request placed," the bank informed exchanges late evening on December 4.
The bank has not conveyed any further information regarding the nature of search, and there is no official communication from the state GST department yet. The search is as per section 67(1), (2) of Maharashtra GST Act, 2017.
Shares of ICICI Bank will need to be watched at opening bell for any sharp reaction. On the NYSE, the ADR of ICICI Bank ended 0.36% higher on December 4, sharply off the highs of the day, with volumes higher than the two-month average.
ICICI Bank had posted robust results for the September quarter with net profit surging 14.5 percent on-year to Rs 11,746 crore. Net Interest Income (NII) rose 9.5 percent YoY to Rs 20,048 crore, reflecting steady growth. The asset quality continued to be robust, with the gross NPA ratio narrowing to 1.97 percent at September 30 compared to 2.15 percent a quarter ago. Net NPA ratio remained nearly flat at 0.42 percent at the end of September, against 0.43 percent in the previous quarter.
ICICI Bank’s September quarter performance stood out compared to other private lenders such as Kotak Mahindra Bank and IndusInd Bank, which reported rising stress in asset quality. The bank has attributed its success to disciplined underwriting, careful customer selection in the personal loans, and effective risk management filters during its recent earnings call.
On a YTD basis, shares of ICICI Bank are higher by 32%.
This is being updated.
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