City Union Bank Limited has received an assessment order from the Income Tax Department that significantly impacts its refund claim for Assessment Year 2024-25. The bank disclosed this development through a regulatory filing under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Assessment Order Details

The Income Tax Department's Assessment Unit passed an order under section 143(3) of the Income Tax Act, reducing the bank's refund claim substantially while raising nil demand. The bank received this communication on March 24, 2026.

Nature of Disallowances

The assessment order involved partial disallowance of several claims made by the bank. The tax authorities disallowed specific deductions that the bank had claimed under various provisions of the Income Tax Act.

Key Disallowances Include:

• Deduction claimed under section 36(1)(vii)
• Deduction claimed under section 36(1)(viii)
• Three additional deductions (specifics not detailed)

Bank's Response and Legal Position

City Union Bank has expressed confidence in its legal position regarding the disallowed claims. The bank emphasizes that its deduction claims are fully allowable based on judicial pronouncements in its own case. Additionally, the bank notes that the same assessment unit had allowed similar claims in previous years, suggesting inconsistency in the current assessment approach.

Financial Impact and Next Steps

The bank has indicated that it is in the process of filing an appeal against the assessment order. Based on previous legal precedents and favorable outcomes in similar cases, the bank expects fair chances of success in the appellate process.

Management's Assessment:

• Claims are supported by judicial pronouncements in bank's favor
• Similar claims were allowed by the same unit in earlier years
• Appeal process to be initiated
• No material impact expected on financial statements

The bank's management has stated that the demand would not have any material impact on the financial statements, indicating confidence in the eventual resolution of the matter through the appellate process.

City Union Bank Limited has announced a key leadership change with the appointment of Shri. Venkatakrishnan S as Chief Risk Officer, effective April 1, 2026. The appointment was approved by the Board of Directors during their meeting held on March 23, 2026, which commenced at 4:00 p.m. and concluded at 6:35 p.m.

Leadership Transition Details

The appointment comes as part of a planned leadership transition, with the current Chief Risk Officer, Shri. Kalyanaraman M, set to retire on March 31, 2026, due to superannuation. Shri. Venkatakrishnan S will assume the role for a period of two years, ensuring continuity in the bank's risk management function.

Professional Background and Qualifications

Shri. Venkatakrishnan S brings extensive experience to his new role, with qualifications including B.Com, CA (Chartered Accountant), and CMA (Cost and Management Accountant). He currently serves as Senior Deputy General Manager in the Risk Management department of City Union Bank, a position he has held since July 2024.

His professional experience spans 26 years overall, with 19 years specifically in the banking sector. His expertise encompasses several critical areas of risk management:

• Credit and operational risk management
• ICAAP (Internal Capital Adequacy Assessment Process)
• Capital adequacy frameworks
• ECL (Expected Credit Loss) under Ind AS
• Portfolio risk monitoring

Career Progression

Prior to joining City Union Bank, Shri. Venkatakrishnan S held significant positions across various financial institutions:

Regulatory Compliance

The appointment has been made in accordance with Regulation 30 read with Schedule III Part A Para A of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended. The bank has also complied with SEBI Master Circular No: HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026, providing comprehensive disclosure of the appointee's background and qualifications.

The disclosure confirms that Shri. Venkatakrishnan S has no relationship with the bank's directors, ensuring independence in his risk management role. This appointment represents a strategic move by City Union Bank to maintain robust risk management capabilities while ensuring smooth leadership transition in this critical function.