CSB Bank Limited has been slapped with a penalty of ₹43.11 lakh by the Central Goods and Services Tax (CGST) authorities for alleged tax violations spanning five financial years. The bank received the penalty order on December 29, and has indicated its intention to challenge the decision through an appeal.

Penalty Details and Allegations

The CGST authorities issued the penalty order for alleged violations during the period from FY 2018-19 to 2022-23.

Nature of Violations

The CGST authorities have alleged two primary violations against CSB Bank:

• Excess availment of Input Tax Credit: The bank allegedly claimed more input tax credit than permissible under GST regulations
• Short payment of GST liability under Reverse Charge Mechanism (RCM): The bank reportedly underpaid its GST obligations under the reverse charge mechanism

Bank's Response and Impact Assessment

CSB Bank has stated its plans to appeal the order, indicating disagreement with the penalty. The bank's management has assessed that the penalty will not materially impact its financial, operational, or other business activities.

Regulatory Compliance

The penalty falls under the provisions of the CGST Act, 2017. The order addresses compliance issues that allegedly occurred over a five-year period, suggesting a comprehensive review by the tax authorities of the bank's GST practices and filings during this timeframe.

CSB Bank Limited has announced a board meeting scheduled for January 28, 2026, to consider and approve the bank's unaudited financial results for the third quarter of fiscal year 2026. The meeting will address the financial performance for the quarter ending December 31, 2025, as communicated through an official regulatory filing dated December 29, 2025.

Board Meeting Details

The board meeting has been scheduled in accordance with Regulation 29(1) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The primary agenda involves reviewing and approving the quarterly financial results that will provide insights into the bank's operational performance during the third quarter.

Financial Results Submission Process

Following the board meeting, CSB Bank will submit the unaudited financial results along with a Limited Review Report to the stock exchanges. The Limited Review Report will be issued by the bank's Joint Statutory Auditors, ensuring compliance with Regulation 33(3) of the Listing Regulations. This submission process maintains transparency and provides stakeholders with auditor-reviewed financial information.

Trading Window Restrictions

The bank has implemented trading window restrictions as part of its insider trading prevention measures. The trading window closure affects designated persons, their immediate relatives, and connected persons under the bank's Code of Conduct - Prohibition of Insider Trading Policy.

The trading restrictions ensure that individuals with access to unpublished price-sensitive information cannot trade in the bank's equity shares during the period surrounding the financial results announcement. This measure aligns with regulatory requirements and maintains market integrity.

Regulatory Compliance and Disclosure

CSB Bank has ensured full regulatory compliance by hosting the meeting announcement information on its official website at www.csb.bank.in , as required under Regulation 46(2) of the Listing Regulations. The bank's registered office is located at CSB Bhavan, St. Mary's College Road, Thrissur, Kerala, and the announcement was signed by Company Secretary Sijo Varghese.

The scheduled board meeting represents a routine quarterly disclosure process that provides stakeholders with regular updates on the bank's financial performance and operational metrics for the third quarter of fiscal year 2026.