J&K Bank Faces ₹400 Crore GST Demand Despite Strong Q3 Profit

BANKINGFINANCE

Overview

Jammu & Kashmir Bank faces a ₹400 crore GST demand, split between ₹200 crore liability and a ₹200 crore penalty. This follows a strong Q3 FY26 profit jump of 11% to ₹589 crore, boosting the bank's stock.

Jammu & Kashmir Bank has received a significant Goods and Services Tax (GST) demand from the Central GST Commissionerate in Jammu. Dated March 23, 2026, the demand includes a principal tax liability of approximately ₹200 crore, matched by an identical ₹200 crore penalty, totaling ₹400 crore.

Strong Q3 Profit and Performance

This tax development comes as the bank posted robust financial results for its third quarter of fiscal year 2026. Net profit climbed 11% year-on-year to ₹589 crore. Total income for the quarter reached ₹3,593 crore, an increase from ₹3,448 crore in the same period last year. The bank also showed improvement in asset quality, with gross non-performing assets (NPAs) dropping to 3% of gross loans in December, down from 4.08% a year prior.

Stock Market Response

Following the announcement of these strong results, shares of Jammu and Kashmir Bank saw a significant rise. The stock reached a high of 5.03% to ₹114.83 during trading. While some gains were trimmed, the shares closed 3.46% higher at ₹113.11, outperforming the broader Nifty index, which gained 1.78%.

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