Central Bank of India has received a significant income tax assessment order demanding ₹296.08 crores from the Income Tax Department for Assessment Year 2024-25. The bank disclosed this development through a regulatory filing under Regulation 30 of SEBI (LODR) Regulations, 2015.

Assessment Order Details

The Income Tax Department issued an assessment order under Section 143(3) read with Section 144B of the Income Tax Act, 1961, dated 28.03.2026. The demand notice was uploaded to the Income Tax Portal by the Assessment Unit, which the bank discovered on 30.03.2026.

Nature of Tax Demand

The assessment order involves re-computation of income and disallowances made regarding claims submitted in the bank's income tax returns. The Income Tax Department has made various additions and disallowances that resulted in the substantial tax liability demand.

Bank's Response Strategy

Central Bank of India has outlined its approach to address the tax demand:

• Legal Challenge: The bank is preparing to file an appeal before the appropriate forum against the disallowances and additions made in the assessment order
• Timeline Compliance: All legal proceedings will be initiated within prescribed timelines
• Legal Grounds: The bank believes it has adequate factual and legal grounds to substantiate its position
• Precedent Analysis: Based on precedence and orders from appellate authorities, the bank expects favorable outcomes

Expected Financial Impact

The bank has stated that it expects no financial implications as it plans to dispute the entire demand. Management believes that based on precedent cases and appellate authority orders, the bank has strong grounds for a successful challenge, expecting the entire demand to be resolved in its favor.

Regulatory Compliance

The disclosure was made in compliance with Regulation 30(13) of SEBI (LODR) Regulations, 2015, which requires listed entities to inform stock exchanges about communications from regulatory, statutory, enforcement, or judicial authorities. Company Secretary and Compliance Officer Chandrakant Bhagwat signed the disclosure, confirming the information's accuracy and completeness.

Central Bank of India has been penalized Rs. 63.60 lakh by the Reserve Bank of India for regulatory non-compliance. The penalty was communicated through an official RBI letter dated March 27, 2026, and subsequently disclosed by the bank to stock exchanges under SEBI regulations.

Penalty Details and Regulatory Violations

The Reserve Bank of India imposed the penalty for non-compliance with specific provisions related to two critical banking regulations:

Legal Framework and Authority

The penalty has been imposed under the comprehensive legal framework of the Banking Regulation Act, 1949. The RBI exercised its powers under multiple sections of the Act to enforce this regulatory action.

Applicable Legal Provisions:

• Section 47A(1)(c): Primary penalty provision
• Section 46(4)(i): Compliance enforcement mechanism
• Section 51(1): Additional regulatory authority

These provisions collectively provide RBI with the authority to impose monetary penalties on banks for regulatory violations and ensure adherence to prescribed banking norms.

Regulatory Disclosure and Compliance

Central Bank of India has fulfilled its disclosure obligations by informing stock exchanges about this regulatory development. The bank's Company Secretary and Compliance Officer, Chandrakant Bhagwat, signed the official communication to both NSE and BSE.

The disclosure was made in accordance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which mandates listed companies to inform exchanges about material events that could impact investor decisions.

Impact on Banking Operations

This penalty highlights the importance of strict adherence to KYC norms and financial inclusion guidelines in the banking sector. The violations related to customer identification processes and basic banking services accessibility, both critical areas for maintaining banking system integrity and promoting financial inclusion initiatives.