Central Bank of India, one of the prominent public sector banks in the country, has disclosed that it has received an income tax assessment order raising a demand of ₹296.08 crore. The disclosure was made in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which requires listed entities to inform stock exchanges about significant regulatory or statutory communications.

The assessment order has been issued under Section 143(3) read with Section 144B of the Income Tax Act, 1961, and pertains to the Assessment Year 2024–25. According to the bank’s filing, the demand notice was dated March 28, 2026, and was uploaded on the Income Tax Department’s portal by the Assessment Unit. The bank became aware of the notice on March 30, 2026.

The demand of ₹296.08 crore relates to tax liability arising from recomputation of income and disallowances made by the Income Tax Department during the assessment process. Such adjustments typically occur when the tax authorities review the returns filed by an entity and identify discrepancies, differences in interpretation of provisions, or claims that are not accepted under the tax laws.

As part of its disclosure, Central Bank of India has clearly stated that it disputes the demand and is in the process of challenging the assessment order before the appropriate appellate authority. The bank has indicated that it will file an appeal within the prescribed timelines as provided under the Income Tax Act.

The bank has also expressed confidence in its position, stating that it believes it has adequate factual and legal grounds to substantiate its claims. It has further noted that based on past precedents and appellate decisions, it expects to receive relief in the matter, which could potentially result in the demand being reduced or nullified.

In terms of financial impact, the bank has indicated that the demand is currently considered not to have any material financial implication, as it intends to contest the entire amount. This suggests that the bank does not expect an immediate cash outflow or adverse effect on its financial statements at this stage, pending the outcome of the appeal process.

Such income tax disputes are not uncommon for large financial institutions, including public sector banks, due to the complexity of income computation, tax provisions, and regulatory interpretations. Banks often deal with multiple streams of income such as interest income, fee income, provisions, and other financial adjustments, which can sometimes lead to differences in tax assessments.

The disclosure has been made in accordance with SEBI’s Industry Standards Note on Regulation 30, which requires companies to provide detailed information regarding regulatory or statutory notices. The bank has also submitted a structured disclosure in the prescribed Form A, outlining key details such as the nature of the communication, authority involved, date of receipt, summary of the order, and actions taken.

According to the disclosure, no penalties, sanctions, or restrictions have been imposed apart from the tax demand itself. The authority has primarily identified issues related to recomputation of income and disallowances. These types of adjustments often involve examination of deductions, exemptions, or accounting treatments adopted by the taxpayer.

Central Bank of India has reiterated that it will pursue legal remedies through the appellate mechanism and expects the matter to be resolved in its favor. The bank has also indicated that it does not foresee any disruption to its financial operations or business activities due to this development.

From a governance perspective, such disclosures reflect transparency and adherence to regulatory requirements. Listed entities are obligated to inform stock exchanges about material legal and regulatory developments that could influence investor decisions. By issuing this intimation, the bank ensures that shareholders and market participants are aware of the ongoing tax matter.

For investors, tax demands of this nature are typically evaluated in the context of the company’s overall financial strength and contingency provisions. Public sector banks like Central Bank of India operate under regulatory oversight and maintain mechanisms to address such disputes without affecting core operations.

The final financial impact, if any, will depend on the outcome of the appeal proceedings. If the bank succeeds in its challenge, the demand may be reduced or eliminated. Conversely, if the appellate authority upholds the order, the bank may need to account for the liability accordingly.

In conclusion, Central Bank of India’s receipt of an ₹296.08 crore income tax demand notice represents a regulatory development that the bank is actively contesting. While the matter is under dispute, the bank has expressed confidence in its legal position and expects no immediate impact on its financial or operational performance, pending resolution through the appellate process.

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