India’s largest lender State Bank of India (SBI) has been served a demand notice of ₹6,338 crore by the Income Tax Department following scrutiny proceedings for the assessment year 2023–24, the bank said in an exchange filing on Friday, March 20.
The demand, amounting to ₹6,338 crore, including interest, arises from various disallowances made by the assessment unit during the review process.
SBI noted that similar issues have been under litigation in previous years, indicating that the current demand is not an isolated case. Given that the amount exceeds the materiality threshold, the bank has disclosed the development to stakeholders.
The order, dated March 19, 2026, has been issued under Sections 143(3), 144C(3), and 144B of the Income Tax Act, stated the exchange filing.
SBI clarified that the order will have no impact on its operations or other business activities. It also said it will pursue appropriate legal remedies, including filing an appeal before the relevant appellate authorities within the stipulated timeline.
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In a separate development, SBI Funds Management Ltd (SBIFML), the asset management arm backed by SBI and France’s Amundi, is preparing to launch its initial public offering (IPO), structured entirely as an offer-for-sale (OFS).
As per draft papers, the issue will comprise up to 20.37 crore equity shares with a face value of ₹1 each. Since it is a pure OFS, the company will not receive any proceeds from the issue, with existing shareholders monetising part of their holdings instead.
Under the proposed structure, SBI plans to sell up to 12.8 crore shares, while Amundi India Holding will offload up to 7.5 crore shares through the public issue.
Shares of State Bank of India ended marginally lower on Friday, March 20, by 0.87% at ₹1,058.00 on the NSE.
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