Bank of Baroda has issued a comprehensive clarification to stock exchanges regarding a temporary debarment from Madhya Pradesh government fund transfer operations. The public sector bank provided a detailed chronological account of events and confirmed the swift resolution of the matter under Regulation 30 of SEBI (LODR) Regulations, 2015.

Detailed Timeline of Events

The bank provided a complete chronological sequence of events leading to the temporary restriction:

Swift Resolution Within 24 Hours

The bank confirmed that the temporary debarment order issued on March 27, 2026 was revoked on March 28, 2026 with immediate effect. The initial order (letter no I/912701/2026) was cancelled through a subsequent letter (No. 91/Service/2026/530) from the Commissioner, DIF, Bhopal, demonstrating the bank's ability to address regulatory matters promptly.

No Material Impact Confirmed

Bank of Baroda emphasized that since the debarment order was cancelled within 24 hours, there was no material impact on the bank's operations. The clarification was provided to stock exchanges pursuant to Regulation 30 requirements, ensuring transparency with stakeholders and maintaining compliance with disclosure norms.

Regulatory Compliance and Transparency

The detailed clarification reflects the bank's commitment to maintaining transparency with regulators and investors. By providing a comprehensive account of the events and their swift resolution, the bank demonstrated its proactive approach to addressing operational challenges while ensuring full regulatory compliance.

Bank of Baroda has received a significant income tax demand notice of ₹806.18 crores for Assessment Year 2020-21 from the Faceless Assessment Unit of the Income Tax Department. The bank disclosed this development on 30.03.2026 in compliance with regulatory requirements under Para A(20) of Part A of Schedule III of LODR.

Tax Demand Details

The demand order was issued under section 156 of the Income Tax Act, 1961, and pertains to several specific tax issues. The notice addresses concerns related to taxability of income from foreign branches, broken period interest paid on purchase of securities, and bad debts written off under section 36(1)(vii) of the Income Tax Act.

Key Issues Under Dispute

The tax demand encompasses three primary areas of contention:

• Taxability of Income from Foreign Branches: Questions regarding the tax treatment of income generated by the bank's overseas operations
• Broken Period Interest: Issues related to interest payments made on securities purchases during partial periods
• Bad Debts Written Off: Disputes over bad debt provisions claimed under section 36(1)(vii) of the Income Tax Act

Bank's Response Strategy

Bank of Baroda has outlined its approach to contest the demand order. The bank is in the process of filing an appeal before the Commissioner of Income Tax (appeals) at the National Faceless Appeal Centre or potentially filing a writ petition before the High Court, depending on the most appropriate legal avenue.

Financial Impact Assessment

The bank has stated that there is no impact on its financial operations or other activities due to this demand notice. Bank of Baroda believes it has adequate factual and legal grounds to substantiate its position in the matter, citing precedence and orders from appellate authorities. The bank expects the entire demand to subside following the appeal process.

This disclosure was made pursuant to regulatory requirements, with the bank informing both BSE and NSE about the development as mandated under LODR regulations.