Federal Bank has received a penalty order of ₹23,36,830 from the Department of Trade & Taxes, Government of NCT of Delhi, on December 29, 2025. The bank disclosed this development under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, indicating the regulatory action's significance.

Penalty Details and Timeline

The penalty order was received by Federal Bank on December 29, 2025, at 10:59 A.M. (IST). The order has been issued under Section 73 of the Central Goods and Services Tax Act, 2017 (CGST Act, 2017), specifically imposing a penalty under Section 73(9) of CGST Act, 2017, read with relevant sections of IGST Act, 2017.

Bank's Response and Next Steps

Federal Bank has announced its intention to file an appeal against the penalty order. This decision indicates the bank's disagreement with the tax department's assessment. The appeal process will allow the bank to present its case before the appropriate appellate authority.

Financial Impact and Regulatory Compliance

The monetary impact of this regulatory action on Federal Bank amounts to ₹23,36,830. This figure represents the penalty imposed by the tax authorities for the alleged violations under the GST framework.

In compliance with SEBI regulations, the bank has fulfilled its disclosure obligations by providing detailed information about the penalty. The disclosure includes comprehensive details about the nature of the action, the issuing authority, the date of receipt, violation details, and the quantifiable financial impact. This transparency ensures that investors and stakeholders are informed about material developments affecting the bank.

Citigroup has revised its investment rating on Federal Bank , downgrading the stock from Buy to Neutral while setting a target price of ₹280 per share.

Rating Change Details

The brokerage firm's decision to lower Federal Bank's rating represents a shift from a positive investment recommendation to a more neutral stance. This change indicates Citi's revised assessment of the bank's near-term prospects and market positioning.

Market Implications

The downgrade from Buy to Neutral suggests that Citi analysts believe Federal Bank's stock may have limited upside potential at current levels. The ₹280 target price provides investors with the brokerage's fair value assessment for the banking stock.

This rating revision comes as part of Citi's ongoing evaluation of banking sector stocks and reflects the firm's updated view on Federal Bank's competitive position and growth prospects within the Indian banking landscape.