State-owned Bank of Baroda has announced that it has received a tax demand order of Rs 1067.82 crore under section 156 of the Income Tax Act, 1961, for the assessment year 2017-18.
In a regulatory filing, the bank stated it is in the process of filing an appeal before the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), or a writ petition before the Honourable High Court. The bank believes it has sufficient factual and legal grounds to contest the demand and expects the entire demand to be nullified. The bank assured that there is no impact on its financial operations or other activities due to this issue.
In other news, Bank of Baroda reported a net profit of Rs 4,886 crore for the January-March quarter of the financial year 2023-24. This marks a 2.3 percent increase compared to the net profit of Rs 4,775 crore in the same period last year.
The bank’s gross non-performing asset (NPA) ratio improved to 2.92 percent, down from 3.79 percent in the corresponding quarter last year. The net NPA ratio also improved to 0.68 percent from 0.89 percent a year ago.
Bank of Baroda’s net interest income for the quarter stood at Rs 11,793 crore, up from Rs 11,525 crore last year. However, the bank experienced a slight decrease in its net interest margin, which fell to 3.18 percent from 3.31 percent last year.
