Bandhan Bank Limited has received a GST demand order worth ₹2.99 crores from Gujarat tax authorities, the bank disclosed in a regulatory filing on December 26, 2025. The Deputy Commissioner, Range-2, Gujarat, issued the order under Section 73 of the Central Goods and Services Tax Act, 2017, alleging various GST-related violations.

Details of the GST Demand Order

The demand order encompasses multiple components including tax, interest, and penalty charges. The breakdown reveals the financial impact across different categories:

Nature of Alleged Violations

The order addresses several GST compliance issues pertaining to the financial year 2021-22. The key allegations include:

• Excess or ineligible Input Tax Credit availed and utilized by the bank
• Non-payment of GST on certain income categories
• Other related GST compliance matters

The bank received the demand order on December 26, 2025, and has disclosed the matter in compliance with SEBI listing regulations.

Bank's Response and Impact Assessment

Bandhan Bank has clarified that the GST demand order will not materially impact its financial position or operational activities. The bank emphasized that despite the substantial demand amount, its overall business operations remain unaffected.

The bank is currently examining the merits of the case and plans to initiate appropriate legal remedies. This includes the possibility of filing an appeal before higher tax authorities to contest the demand order.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The bank has provided comprehensive details as required under the regulatory framework, ensuring transparency with stakeholders and investors regarding this development.

Bandhan Bank , a prominent player in India's banking sector, has taken a significant step towards improving its asset quality by approving the sale of non-performing assets (NPAs) and written-off assets. The bank's board of directors has given the green light to offload assets with a principal outstanding amount of Rs 32.12 billion through the Swiss Challenge method, marking a crucial move in the bank's efforts to clean up its balance sheet.

Key Highlights of the Asset Sale

• Total Value: The approved sale includes NPAs and written-off assets worth Rs 32.12 billion.
• Sale Method: The bank will employ the Swiss Challenge method for the sale process.
• Asset Categories: The sale encompasses assets from the bank's Emerging Entrepreneurs Business (EEB), including group loans and small business agri loans, as well as the Aspiring Business Group (ABG).

Breaking Down the Asset Sale

The asset sale is divided into two main components:

1. NPA Portfolio:

   • Principal outstanding: Rs 3,212.17 crore
   • Criteria: NPAs with more than 180 Days Past Due
   • Sale Method: Swiss Challenge

2. Written-off Loan Portfolio:

   • Principal outstanding: Rs 3,719.14 crore
   • Sale Method: Auction route

Impact on Bandhan Bank's Financial Position

To understand the potential impact of this asset sale on Bandhan Bank's financial health, let's look at some key figures from its recent balance sheet:

The proposed sale of Rs 32.12 billion (equivalent to Rs 3,212 crore) in NPAs represents a significant portion of the bank's current assets. This move is likely to have a substantial impact on the bank's asset quality and could potentially lead to improved financial ratios in the coming quarters.

Strategic Implications

1. Balance Sheet Cleanup: This initiative demonstrates Bandhan Bank's commitment to addressing asset quality concerns and strengthening its financial position.

2. Risk Management: By offloading non-performing and written-off assets, the bank aims to reduce its risk exposure and potentially improve its credit ratings.

3. Regulatory Compliance: The move aligns with regulatory expectations for banks to maintain healthy asset quality and adequately manage non-performing assets.

4. Investor Confidence: A successful execution of this asset sale could boost investor confidence in the bank's proactive approach to managing its loan portfolio.

Conclusion

Bandhan Bank's decision to sell Rs 32.12 billion worth of NPAs and written-off assets marks a significant step in its efforts to streamline its balance sheet and improve overall asset quality. As the bank moves forward with the Swiss Challenge method and auction process, market observers will be keenly watching the execution and impact of this strategic move on the bank's financial health and market position.

Investors and stakeholders should continue to monitor the progress of this asset sale and its effects on Bandhan Bank's financial metrics in the coming quarters. The success of this initiative could set a precedent for similar moves by other banks in the Indian banking sector, potentially influencing industry-wide practices in managing distressed assets.