Kotak Mahindra Bank Shares Trade Lower After Rs 57.20 GST Demand Notice
Kotak Mahindra Bank Share Price: Shares of Kotak Mahindra Bank fell in Friday’s trade, a day after the lender received a show-cause-cum-demand order from the assistant commissioner of central goods and service tax (GST) and excise. It levied a cumulative Rs 57.20 lakh towards central goods and services tax (CGST), accompanied by applicable interest and a penalty of Rs 5.1 lakh.
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The demand has disallowed the input tax credit (ITC) on certain expenses during FY18 and FY19.
The amount is not significant, considering the private sector lender’s Rs 3,191-crore net profit recorded for the quarter ended September 2023. It was a 23.6 percent rise over the last year. Its net interest income, the difference between the interest earned by a bank and the interest paid, came in at Rs 6,296.6 crore for the quarter, a 23.5 percent YoY gain.
Kotak Mahindra Bank swiftly announced its intent to appeal against the orders, citing adequate grounds to support its stance. The bank believes that it can successfully challenge the disallowance of input tax credit (ITC) on certain expenses during the financial years 2017-18 and 2018-19.
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“The Bank believes that it has adequate grounds to support its position in the matter and would prefer an appeal against the aforesaid orders, under the applicable laws. The impact of the above order would be limited to the amount of levy payable by the Bank under the aforesaid orders,” the lender said.
So far this year, the stock has gained over 3.5 percent. In comparison, the benchmark Nifty 50 has surged nearly 20 percent.
The private lender announced that the Reserve Bank of India (RBI) has approved the appointment of CS Rajan, who serves as an independent director of the bank, as the part-time Chairman of the bank. This appointment is effective from January 1, 2024, and is slated to last two years.
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Rajan assumed the role of independent director on the bank’s board from October 22, 2022. His appointment follows the retirement of the incumbent non-executive independent part-time chairman, Prakash Apte, whose term expires on December 31, 2023.
On being appointed as the chairman, Rajan said;, “I am deeply humbled and honoured to accept the appointment as Chairman of the Bank and thank the Board for entrusting me with the responsibility to steer the Bank to new heights and increase stakeholder value. I look forward to working collaboratively with the Board and the entire Team.”
