Private sector lender RBL Bank Ltd has received a show cause notice dated September 2, 2026, under Section 73 of the Goods and Services Tax Act, 2017, proposing a GST demand aggregating to ₹164.14 crore, including applicable interest and penalty. According to a stock exchange filing disclosed on September 3, 2026, the notice has been issued by the Assistant Commissioner, Delhi, in relation to an alleged mismatch between input tax credit reported in GST returns under the separate GST registration obtained for the bank's bullion business vertical. The authorities have proposed an aggregate demand of ₹164,14,53,222, covering the disputed tax amount, interest and penalty. The lender is reviewing the notice and will submit its response within prescribed timelines.
Despite the GST notice, RBL Bank reported mixed quarterly results with Net Interest Income falling 13% to ₹1,480.6 crore, which was lower than the CNBC-TV18 poll of ₹1,521 crore. The lender's net profit nearly halved to ₹200 crore, representing a 46.2% drop from the base quarter's level of ₹372 crore, though it exceeded the poll estimate of ₹159 crore. Asset quality showed some deterioration with gross NPA rising to 2.78% from 2.6% in March, while Net NPA increased to 0.45% from 0.29% in March. Provisions during the quarter declined sharply to ₹442.3 crore from ₹785.1 crore in March.
In its post-earnings conference call, RBL Bank acknowledged facing asset quality challenges in the cards portfolio for most of last year but expects gradual improvement. The bank noted that repo-linked loans were repriced immediately, while deposit repricing will take time, impacting net interest margins in the near term. However, management expects reasonable improvement in NIMs from Q3 onwards and guided for a **liquidity coverage ratio (LCR) in the range of 120–140%. Shares of RBL Bank ended at ₹408.00, up by ₹18.50, or 4.75% on the BSE following the results announcement, with the market reaction suggesting investors view the proposed GST demand as manageable.
Based on its preliminary assessment, RBL Bank stated that the proposed demand primarily arises from an erroneous comparison and reconciliation of returns and data. The bank's position is supported by records and reconciliations, and based on current facts and assessment, RBL Bank does not expect the matter to have any material adverse impact on its operations or financial position. The lender will present these documents while responding to the tax department's allegations, as a show-cause notice represents a proposed demand that gives the recipient an opportunity to explain its position before authorities pass a final order. The disclosure was submitted under Regulation 30 of the Securities and Exchange Board of India's Listing Obligations and Disclosure Requirements Regulations, 2015, and published on the bank's official website in accordance with applicable disclosure regulations.
