Mumbai: The Maharashtra GST department conducted search operations at three offices of ICICI Bank, India's second-largest private sector lender, on December 4, 2024. The searches are part of an ongoing investigation under Sections 67(1) and 67(2) of the Maharashtra GST Act, 2017.

Bank’s Response

ICICI Bank issued a statement confirming the searches and assured full cooperation with the authorities. "The GST authorities initiated searches at three of our offices on December 4. We are providing all necessary data and information as per their requests," the bank stated. As of now, the GST department has not disclosed further details about the investigation or its findings.

Strong Financial Performance Amid Probe

The searches come at a time when ICICI Bank is reporting robust financial performance. For the second quarter of FY 2024-25, the bank logged a 14.5% year-on-year increase in net profit, amounting to ₹11,745.9 crore, compared to ₹10,261 crore in the same period last year.

Key highlights of the bank’s Q2 results:

Net Interest Income (NII): Grew by 9.5%, reaching ₹20,048 crore, compared to ₹18,307.9 crore in the previous year.

Loan Portfolio: Domestic loans expanded by 15.7% year-on-year and 4.6% sequentially as of September 30, 2024.

Retail Loans: Constituted 53% of the total portfolio, growing by 14.2% y-o-y.

Asset Quality: Gross Non-Performing Assets (NPA) ratio improved to 1.97%, down from 2.15% in the previous quarter.Net NPA ratio reduced to 0.42% from 0.43%.

Context of the Search

While the specifics of the investigation remain undisclosed, searches under Sections 67(1) and 67(2) typically involve cases of suspected tax evasion or irregularities in compliance with GST regulations.

Broader Implications

The searches have drawn attention to ICICI Bank during a period of financial growth and operational efficiency. With its expanding loan portfolio and improved asset quality, the bank remains a leader in the private banking sector, even as it faces scrutiny.

The outcome of the GST probe could have implications for the bank’s compliance practices and industry reputation. Further updates from the authorities and ICICI Bank are awaited.