SBI gets ₹6,337 crore tax demand, flags earlier-year disputes as it moves to appeal
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State Bank of India on Friday said it received an income-tax demand of ₹6,337 crore, including interest, for assessment year 2023-24, marking one of the largest tax claims disclosed against an Indian lender in recent years.
In an exchange filing, the bank said the order was passed on March 19 and that it will challenge the demand before appellate authorities within the prescribed timelines.
Order linked to ongoing areas of dispute
SBI said that the demand arises from “disallowances on various grounds,” adding that similar issues are already under litigation for earlier assessment years.
This suggests the current order is part of a broader, ongoing tax dispute rather than a standalone development.
Headline number masks litigation reality
While the ₹6,337 crore figure sounds massive, tax demands at this stage represent initial assessments and are routinely contested by large corporates. Such orders often include interest components and are subject to multiple layers of appeal, with final liabilities determined only after prolonged litigation.
A recent case involving SBI Life Insurance stresses how such demands can be revised.
Earlier this month, the insurer reported that its FY22 tax demand was reduced to ₹470.88 crore from ₹5,317.18 crore following a rectification order by the tax department, after the company challenged the computation of tax and interest.
Strong Q3 earnings
The development comes even as SBI continues to report strong financial performance. The bank posted a record standalone net profit of ₹21,028 crore in Q3 FY26, supported by robust credit growth and improved asset quality.
Operating profit for the quarter stood at ₹32,862 crore, up nearly 40% year-on-year, while gross NPAs continued to trend lower, reflecting improvement in asset quality.
The shares of SBI ended 0.90% higher at ₹1,058.30 apiece on the national stock exchange on Friday. The lender's stock has risen over 41% during the past year, outperforming the Nifty Bank index that has risen nearly 7% during the same period.