J&K Bank gets whopping Rs 16,000-crore GST notice, 1.5x its total m-cap; shares fall

J&K Bank gets whopping Rs 16,000-crore GST notice, 1.5x its total m-cap; shares fall

Jammu and Kashmir Bank share price fell in Wednesday's trading session after the lender received a whopping Rs 16,000-crore GST notice. The notice includes a GST as well penalty amount.

The shares of Jammu and Kashmir Bank Ltd dropped to an intraday low of Rs 99.26 per share on the NSE, down 3.95 percent. However, later it pared some of its losses and was down to Rs 101.35, falling 1.94 percent at around 11:50 AM.

The bank in a regulatory filing, said "Bank has received a demand dated February 04, 2025 from Joint Commissioner, Central GST Commissionerate, Jammu for GST liability of Rs. 81,30,66,42,768/- (Rupees Eight Thousand One Hundred Thirty Crores Sixty Six Lacs Forty Two Thousand Seven Hundred and Sixty Eight Only) with interest as applicable and penalty of Rs. 81,30,66,42,768/- (Rupees Eight Thousand One Hundred Thirty Crores Sixty Six Lacs Forty Two Thousand Seven Hundred and Sixty Eight Only)."

The bank posted a 26 percent year-on-year increase in net profit, reaching Rs 532 crore for the December 2024 quarter, compared to Rs 421 crore in the same period last year. Its net interest margin for the quarter stood at 4.04 percent, rising by 14 basis points sequentially, according to the company's income statement.

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