Mumbai, March 20 (AHN) State Bank of India on Friday said it has received an income tax demand of Rs 63,375 crore for the assessment year 2023–24 and said it will challenge the order.

The public lender lender informed stock exchanges that it has received a tax demand notice from the Income Tax Department following scrutiny assessment proceedings.

The order, dated March 19, 2026, includes a total demand of Rs 63,375 crore, which also covers interest.

The bank said the demand has been raised due to certain disallowances made by the assessment unit on multiple grounds.

In its regulatory filing, State Bank of India noted that similar issues are already under litigation for previous financial years, indicating that the matter is not entirely new.

“SBI has received an order under Section 143(3) read with section 144C(3) and 144B of the Income Tax Act from the Assessment Unit, Income Tax department, in terms of which a demand of Rs 63,37,52,52,550 has been raised pursuant to the scrutiny assessment proceedings conducted for AY 2023-24,” SBI said in its filing.

The country’s largest lender said it will take necessary steps to contest the order. It plans to file an appeal before the appropriate appellate authorities within the prescribed timeline.

“In the said order, the Assessment Unit has made disallowances on various grounds. The Bank is already in litigation on similar grounds in the earlier years. Since, the aggregate amount involved in the above order exceeds the materiality threshold, the matter is being reported,” SBI stated.

The bank also clarified that the tax demand will not have any impact on its day-to-day operations or overall business activities.

“There is no impact on operations or other activities of the Bank due to the Order,” it added.