NSE/BSE Codes: EQUITASBNK (NSE), 543243, 976218, 976979 (BSE)

Summary of Key Information:

Nature of Event / Disclosure:

Regulatory disclosure under SEBI Listing Regulations 30 regarding update on Show Cause Notice from GST Authorities. This is a follow-up to previous intimation dated September 22, 2026.

Involved Parties / Authorities:

  • Office of the Deputy Commissioner (ST), Central-III Zone, Commercial Taxes Department, Government of Tamil Nadu
  • GST Authorities under Central Goods and Services Tax Act, 2017 and Tamil Nadu Goods and Services Tax Act, 2017

Date / Timeline of Event:

  • Show Cause Notice dated: September 19, 2026
  • Form GST DRC-01 dated: September 21, 2026
  • Previous intimation to exchanges: September 22, 2026
  • Personal hearing held: September 25, 2026
  • Subsequent communication from GST authority: September 28, 2026
  • Current disclosure date: September 28, 2026

Brief Description of Outcome / Dispute:

The Bank received a Show Cause Notice (reference ZD330926162719U) under Section 73 of CGST and TN GST Acts for financial year 2022-23. Following a personal hearing, the proposed assessment has been substantially reduced. The dispute primarily concerns exemption-related turnover on interest income from loans and advances, with certain specified receipts and reconciliation items remaining subject to verification.

Impact of Outcome:

Financial Impact:
  • Original proposed assessment: ₹533,81,24,251 (₹533.81 crore)
  • Revised proposed assessment: ₹23,95,12,141 (₹23.95 crore) - representing a 95.5% reduction
  • Breakdown of revised amount:
  • Tax: ₹21,67,28,670 (₹21.67 crore)
  • Interest: ₹11,10,604 (₹0.11 crore)
  • Penalty: ₹2,16,72,867 (₹2.17 crore)

The reduction primarily resulted from the Bank's submissions on exemption of interest income from loans and advances.

Operational / Business / Strategic Impact:

No material operational or business disruption disclosed. The Bank continues to maintain that even the remaining amount is eligible for exemption and will be producing further evidence to support its position.

Other Implications:

The matter remains subject to verification of supporting documents for certain specified receipts and reconciliation items. The outcome could have implications for the Bank's tax compliance standing.

Next Steps / Required Actions:

  • The Bank will produce further evidence and documents to establish its position that the remaining amount is exempt
  • Ongoing verification of supporting documents for certain specified receipts and reconciliation items
  • Further updates will be provided to exchanges as the matter progresses
  • The Bank commits to informing about outcome of further progress in due course