 "ICICI Bank offices searched by Maharashtra GST authorities, probe underway")
Maharashtra’s GST authorities on Wednesday initiated search operations at three offices of ICICI Bank, the second-largest private lender in India. The bank disclosed this development in a regulatory filing later that evening, noting its full cooperation in providing the requested data.
“Please note that on December 4, 2024, GST authorities initiated search at three offices of ICICI Bank. The proceedings are on-going and the bank is cooperating in providing data as per request placed,” ICICI Bank said in an exchange filing.
As of now, the bank has not provided additional details regarding the nature of the investigation. Similarly, the state GST department has not released any official statements. The searches are reportedly being carried out under Section 67(1) and (2) of the Maharashtra GST Act, 2017.
Market impact
A report by Moneycontrol mentions that market watchers will closely monitor ICICI Bank’s stock at the opening bell for any significant reactions following the news. On the New York Stock Exchange (NYSE), the bank’s American Depository Receipts (ADRs) rose 0.36 per cent on December 4 but closed well below the day’s highs. Trading volumes on the ADR were notably higher than the two-month average.
Financial performance in Q2
ICICI Bank delivered strong financial results for the quarter ended September 2024. The bank’s net profit surged 14.5 per cent year-on-year (Y-o-Y) to Rs 11,746 crore, while Net Interest Income (NII) grew 9.5 per cent Y-o-Y to Rs 20,048 crore. The bank reported improved asset quality improvements with the gross NPA ratio narrowing to 1.97 per cent, compared to 2.15 per cent in the previous quarter. The net NPA ratio remained steady at 0.42 per cent.
On a year-to-date basis, ICICI Bank’s stock has gained 32 per cent, reflecting “investor confidence in its growth trajectory and operational resilience”.