On March 27, 2025, South Indian Bank Ltd. received an Income Tax Demand Order of ₹53,42,62,940/- from the Office of the Deputy Commissioner of Income Tax, Thrissur. The bank disclosed this information pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Nature of the Order and Key Details

The demand order pertains to the disallowance of claims made by the bank in its Income Tax Return (ITR) for the financial year 2019-20. The communication from the Income Tax Department was received by the bank at 5:47 PM on March 27, 2025.

The Deputy Commissioner of Income Tax, Thrissur, issued this order after scrutinizing the tax claims made by the bank for the relevant assessment year. The demand amount of ₹53.42 crore has been raised, citing non-compliance with specific tax norms related to disallowed claims.

Response from South Indian Bank

In response to the order, South Indian Bank has initiated the process of filing an appeal before the appropriate forum within the prescribed statutory timelines. The bank believes that it has adequate factual and legal grounds to substantiate its claims and expects to obtain relief from higher appellate authorities.

Impact on Financial and Operational Activities

Despite the significant quantum of the demand, South Indian Bank has clarified that there will be no immediate impact on its financial, operational, or other activities. The bank is confident that based on precedents and facts, the entire demand is likely to subside after obtaining relief from the appropriate appellate authorities.

Steps Taken by South Indian Bank

1. Filing an Appeal: The bank is preparing to challenge the demand order by submitting an appeal before the relevant appellate forum, ensuring compliance with regulatory timelines.

2. Assessment of Grounds for Appeal: Legal experts and the bank’s finance team are closely evaluating the grounds for appeal, considering previous favorable judgments in similar matters.

3. Ongoing Monitoring: The bank has implemented an ongoing monitoring mechanism to track progress in the matter and provide necessary updates to stakeholders.

Annexure I: Details of SEBI Disclosure

As part of the SEBI (LODR) Regulations, 2015, South Indian Bank has disclosed the following particulars:

• Name of Authority: Office of the Deputy Commissioner of Income Tax, Thrissur.

• Nature of Action: Demand order for ₹53,42,62,940/- regarding disallowances made in the ITR for the financial year 2019-20.

• Date of Receipt: March 27, 2025, at 5:47 PM.

• Violation/Contravention Alleged: Disallowance of certain claims made by the bank.

• Financial Impact: Though the demand amount is ₹53.42 crore, the bank does not foresee any material financial impact, as it expects relief from higher authorities.

Regulatory Compliance and Disclosure

South Indian Bank has adhered to all regulatory norms by making this disclosure under Regulation 30 of SEBI (LODR) Regulations, 2015. The details have been duly submitted to the National Stock Exchange of India (NSE) and BSE Ltd. for public record.

The information has also been published on the official website of South Indian Bank, ensuring transparency and compliance with disclosure obligations.

Conclusion

South Indian Bank has taken prompt action in response to the Income Tax Department’s demand order. The bank remains confident that its appeal will result in favorable relief, ensuring that the financial impact, if any, remains minimal. As of now, the bank’s operations, financial standing, and stakeholder interests remain unaffected.

Stakeholders can expect further updates as the bank progresses with its legal course of action.

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