SBI Life Insurance Company has received an income tax assessment order demanding Rs 537.75 crore for the financial year 2023–24, the company said in an exchange filing on Wednesday.
The demand includes tax of Rs 441.24 crore and interest of Rs 96.51 crore. No penalty has been imposed.
The order was issued by the Faceless Assessment Unit of the Income Tax Department and was received by the insurer on 11 March 2026.
According to the filing, the assessment disallowed exemptions under sections 10(15) and 10(23AAB) of the Income Tax Act and treated certain income under section 56. The authority also applied a corporate tax rate of 30 per cent instead of the rate applicable under section 115B.
Company to file appeal
SBI Life said the order is appealable before the Appellate Authority and it plans to challenge the assessment.
“The said income tax order is appealable before the Appellate Authority. The company will file its appeal within the specified period,” the insurer said in the filing.
The company added that the order will not have any material adverse impact on its financial operations.
Quarterly performance remains steady
SBI Life recently reported a 5 per cent year-on-year rise in net profit to Rs 577 crore for the quarter ended 31 December 2025, compared with Rs 551 crore a year earlier.
Net premium income increased 22 per cent year-on-year to Rs 30,245 crore. One-time premium receipts grew 24 per cent, while renewal premiums from existing policies rose nearly 21 per cent, reflecting strong customer retention.
However, operating costs increased during the quarter. Management expenses jumped more than 45 per cent to Rs 3,519 crore, driven by a 28 per cent rise in commissions and a 36.6 per cent increase in employee-related expenses.
AUM and new business growth
Assets under management (AUM) grew 16 per cent to Rs 5,117.1 billion as of 31 December 2025, compared with Rs 4,416.8 billion a year earlier. The portfolio mix stood at 59:41 between debt and equity. Around 95 per cent of the debt investments are in AAA-rated and sovereign instruments.
Total new business sum assured rose 69 per cent to Rs 10,833.6 billion, reflecting strong growth in policy issuance.
The insurer also strengthened its position in the individual insurance segment. Individual rated premium stood at Rs 166.8 billion, giving the company a 25.6 per cent share of the private market during the first nine months of FY26.
Individual new business premium increased 13.5 per cent year-on-year to Rs 225.5 billion during the period.
Overall, gross written premium rose 20 per cent year-on-year to Rs 733.5 billion in the first nine months of FY26, supported by a 24 per cent rise in single premium and a 21 per cent increase in renewal premium.
SBI Life share price
Shares of SBI Life closed at Rs 1,931.10 on the BSE on Wednesday, down Rs 32.40 or 1.65 per cent.
