The Jammu & Kashmir Bank Limited — Important, 05-02-2025: General Updates

Jammu and Kashmir Bank has received a substantial GST demand from the Joint Commissioner, Central GST Commissionerate, Jammu, amounting to ₹8,130.66 Crore, inclusive of penalties. This demand pertains to the period from July 8, 2017, to March 31, 2020, related to the bank's Transfer Pricing Mechanism (TPM) regarding interest receivable from its common pool of funds. The bank asserts that these TPM entries are notional and do not constitute financial services subject to GST. Management believes they have a strong legal case and have initiated legal proceedings against the demand, expressing confidence that it will be resolved favorably. The bank anticipates that this demand will not materially affect its financial health or operations. Investors should watch closely for developments in this matter as it unfolds.