State Bank of India (SBI), the country’s largest public sector lender, has been slapped with a massive income tax demand of ₹63,375 crore (including interest) for the assessment year 2023–24. In a regulatory filing on Friday, March 20, the bank informed the stock exchanges that it received the order from the Income Tax Department on March 19. The sheer magnitude of this tax demand has sent shockwaves through the financial markets.

The demand arises from various “disallowances” made by the assessment unit during scrutiny proceedings. However, SBI has expressed its disagreement with the order, stating that it will challenge the demand before the appropriate appellate authorities. The bank further clarified that this tax notice has no impact on its day-to-day operations or other banking activities. Despite the bank’s calm stance, the news has caused significant anxiety among shareholders.

Market analysts are closely watching the upcoming Monday session, as such a heavy financial liability could dampen investor sentiment. There are fears that the SBI stock might witness a sharp correction or even a “crash” as the market reacts to this negative news. While top brokerage firms like Motilal Oswal maintain a positive long-term outlook on the stock with high price targets, the immediate future looks volatile. Investors are advised to keep a close eye on the stock’s performance when the market opens on Monday morning.