Srinagar, Feb 05 (KNO): Jammu & Kashmir Bank is facing a significant financial challenge after receiving a massive Rs 16,000-crore GST notice, which includes the GST liability as well as a penalty amount. This demand is over 1.5 times the bank's total market capitalisation of Rs 11,273.91 crore.
News agency—Kashmir news observer (KNO) has learnt that the notice was issued by the Joint Commissioner of the Central GST Commissionerate in Jammu on February 4, 2025. The bank was asked to pay Rs 8,130.66 crore in GST liability, with a similar amount in penalty charges.
The news of the GST demand caused J&K Bank’s shares to fall sharply in the stock market.
In Wednesday's trading session, the bank's share price dropped to an intraday low of Rs 99.26 per share on the NSE, marking a 3.95% decline.
While the shares partially recovered, they were still down by 1.94% at Rs 101.35 as of 11:50 AM.
Despite the alarming scale of the notice, J&K Bank has reassured its investors. In a regulatory filing, the bank stated that the demand order will not have any material impact on its financials, operations, or overall business activities—(KNO)