Three ICICI Bank offices searched by Maharashtra GST in tax-related probe

The Maharashtra GST department has launched a search operation at three offices of ICICI Bank, India's second-largest private lender. The raids, initiated on December 4, are part of an ongoing investigation under Sections 67(1) and (2) of the Maharashtra GST Act, 2017. While the bank has not disclosed specifics, it confirmed full cooperation with the authorities.

"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 co-operating fully in providing data as per request placed," the bank informed exchanges late on December 4.

Neither the bank nor the GST department has provided further details regarding the nature or scope of the search. Market watchers are keeping a close eye on ICICI Bank’s shares for potential reactions at the opening bell. On the NYSE, the bank's ADR closed up 0.36% on December 4, although it retreated sharply from intraday highs amid increased trading volumes.

This development comes at a time when ICICI Bank is riding high on solid financial performance. In the September quarter, the lender reported a 14.5% year-on-year rise in net profit to ₹11,746 crore. Net Interest Income (NII) grew 9.5% YoY to ₹20,048 crore, and the bank's gross NPA ratio improved to 1.97% as of September 30, down from 2.15% a quarter ago. The net NPA ratio remained steady at 0.42%.

ICICI Bank's resilience has set it apart from peers like Kotak Mahindra Bank and IndusInd Bank, which are grappling with rising asset stress. The bank attributes its success to disciplined underwriting, selective lending, and robust risk management practices.

Despite the ongoing probe, ICICI Bank’s stock has gained 32% year-to-date, reflecting investor confidence in its performance and strategy.