Jana Small Finance Bank , a prominent player in the Indian banking sector, has recently received a significant GST demand and penalty order totaling ₹14.32 crore. The bank has announced its intention to contest this order through the appropriate legal channels.

Details of the GST Order

According to the bank's disclosure to the stock exchanges, the order was passed on August 25, 2025, by the Additional Commissioner of Central Tax GST, Bengaluru East Commissionerate, Karnataka. The order includes:

• A demand of ₹14,32,50,552 (plus applicable interest)
• An additional penalty of ₹14,32,50,552

Nature of the Alleged Violation

The GST demand stems from a dispute over the bank's interpretation of input tax credit claims on capital goods. Jana Small Finance Bank had exercised an option under section 17(4) of the Central Goods and Services Tax Act, 2017, claiming 50% of the eligible input tax credit. The bank had capitalized the remaining 50% of the input tax credit and claimed depreciation on it.

However, the tax authorities have not accepted this approach. They contend that the input tax credit claimed on capital goods contravenes the provisions of section 16(3) of the CGST Act, 2017. The demand covers the financial years from 2018-19 to 2022-23.

Bank's Response and Future Action

Jana Small Finance Bank maintains that its claim is in line with the provisions of the CGST Act, 2017. The bank has stated its intention to file an appeal before the appropriate Commissioner (Appeals) against the order.

In its disclosure, the bank expressed confidence in its position, stating:

"Based on the assessment and advice of our tax advisors, the Bank does not expect the order to have any material financial impact as aforementioned adjustments are not sustainable in law and are wholly defendable on the facts of the case."

Implications for Investors

While the GST demand and penalty amount is substantial, Jana Small Finance Bank's management appears confident in its legal standing. However, investors should monitor the situation closely as the appeal process unfolds, as it could potentially impact the bank's financial position if the appeal is unsuccessful.

As the matter is now subject to legal proceedings, further developments in this case will be of interest to shareholders and the broader financial community.

Jana Small Finance Bank , a prominent player in the Indian banking sector, has announced significant changes to its senior management team, effective August 18, 2025. The bank is set to welcome two seasoned professionals to its leadership ranks while bidding farewell to a key executive.

New Appointments

Chief Credit Officer

Asheesh Maroo is slated to join Jana Small Finance Bank as the new Chief Credit Officer. Maroo brings an impressive 30 years of experience in business and credit risk management to the role. His extensive career includes stints at major financial institutions such as YES Bank, ICICI Bank, and Birla Global. This wealth of experience is expected to significantly bolster Jana Small Finance Bank's credit risk management capabilities.

Chief Operating Officer

Rajesh Sharma is set to take on the role of Chief Operating Officer at the bank. With a remarkable 34-year career in operations and customer services, Sharma's expertise spans across notable institutions including HDFC Bank and Corporation Bank. His appointment is anticipated to enhance the bank's operational efficiency and customer service standards.

Executive Departure

In a parallel development, the bank announced the resignation of Ganesh Nagarajan from his position as Chief Operations Officer. Nagarajan's last working day is scheduled for November 17, 2025. The bank cited personal reasons for his departure, specifically mentioning his need to relocate to Chennai due to family health issues. These include medical complications affecting his wife and health concerns of his 80-year-old mother.

Implications for Jana Small Finance Bank

These leadership changes come at a crucial time for Jana Small Finance Bank. The infusion of new talent with extensive experience in the banking sector suggests a strategic move to strengthen the bank's core operations and risk management practices. The appointments of Maroo and Sharma are likely to bring fresh perspectives and industry best practices to the bank's operations.

However, the departure of Nagarajan, a key executive, may pose temporary challenges in terms of continuity in the operations department. The bank will need to ensure a smooth transition to maintain operational stability.

These developments underscore Jana Small Finance Bank's commitment to evolving its leadership team to meet the dynamic challenges of the banking industry while also highlighting the importance of work-life balance and family considerations in corporate decision-making.

As Jana Small Finance Bank navigates these changes, stakeholders will be keenly watching how these new appointments influence the bank's strategic direction and operational performance in the coming years.