State-owned Bank of Baroda in a regulatory filing has said that the bank has received a demand order of Rs 1067.82 crore under section 156 of the Income Tax Act, 1961, pertaining to AY 2017-18.
In a regulatory filing, the Bank of Baroda said, “The Bank is under the process of filing an appeal before the Commissioner of Income Tax (appeals), National Faceless Appeal Centre (NFAC)/ writ petion before Honourable High Court (as may deems fit) against the said order within the prescribed timelines. Looking to the precedence/ orders of appellate Authorities, the Bank believes that it has adequate factual and legal grounds to reasonably substantiate its position in the matter. Accordingly, the Bank expects the entire demand to subside. As such, there is no impact on financial operations or other activities of the bank.”
Meanwhile, Bank of Baroda reported a net profit of Rs 4,886 crore for the January-March quarter of the financial year 2023-24, which marks a 2.3 percent jump as compared to a net profit of Rs 4,775 crore clocked in the year-ago period.
The bank’s gross non-performing asset (NPA) stood at 2.92 percent, down from 3.79 percent in the corresponding quarter last year. On the other hand, net NPA for the quarter stood at 0.68 percent as compared to 0.89 percent a year ago.
The lender’s net interest income for the quarter stood at Rs 11,793 crore from Rs 11,525 crore from last year. The bank saw a compression in its net interest margin which fell to 3.18 percent from 3.31 percent last year.
Total domestic deposits of the bank stood at Rs 11.28 lakh crore, growing 7.7 percent yearly from Rs 10.47 lakh crore. And domestic advances grew by 12/9 percent from Rs 7.95 lakh crore in Q4FY23 to Rs 8.98 lakh crore in Q4FY24.