Bank of Baroda has received a demand notice amounting to ₹457.25 crores from the Faceless Assessment Unit of the Income Tax Department, concerning the assessment year 2019-20. The notice was received on 30th March 2026 and pertains to issues related to the taxability of income from foreign branches and broken period interest paid on the purchase of securities.
Despite the significant amount involved, the bank has stated that there will be no impact on its financial operations or other activities. Bank of Baroda is currently preparing to file an appeal before the Commissioner of Income Tax (Appeals) at the National Faceless Appeal Centre or possibly a writ petition before the High Court, as deemed appropriate. The bank is confident that it has sufficient factual and legal grounds to contest the demand successfully, referencing precedents and orders from appellate authorities.
The bank’s proactive approach in addressing this demand notice highlights its commitment to maintaining financial stability and operational continuity. Bank of Baroda’s management is taking all necessary steps to ensure that the matter is resolved without affecting its financial health.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).