+

Cookies on the Business Insider India website

Business Insider India has updated its Privacy and Cookie policy. We use cookies to ensure that we give you the better experience on our website. If you continue without changing your settings, we\'ll assume that you are happy to receive all cookies on the Business Insider India website. However, you can change your cookie setting at any time by clicking on our Cookie Policy at any time. You can also see our Privacy Policy.

Close
HomeQuizzoneWhatsappShare Flash Reads
 

SBI reports loan divergence of Rs 11,932 cr for FY19

Dec 10, 2019, 14:11 IST
PTI
New Delhi, Dec 10 () The country's largest lender State Bank of India (SBI) on Tuesday reported about Rs 12,000 crore divergence in their bad loans for the last fiscal.

As per the assessment done by the RBI, the gross NPA of the SBI was 11,932 crore more at Rs 1,84,682 as against Rs 1,72,750 reported by the bank for 2018-19, SBI said in a regulatory filing.

Advertisement

Similarly, the net NPA was 77,827 crore as compared to disclosed figure of Rs 65,895 crore, reflecting divergence of Rs 11,932 crore, it said.

As a result the bank has to make additional provisioning of Rs 12,036 crore in the balancesheet and the notional loss would have been at Rs 6,968 crore.

SBI had posted a profit of Rs 862 crore for 2018-19 in May this year.

It further said after subsequent slippage or upgradation during the current financial year, the remaining impact on the gross NPAs during the third quarter of current fiscal is Rs 3,143 core.

Advertisement

The impact on provisioning during the third quarter stood at Rs 4,654 crore, it added.

In recent months, there have been several instances of under-reporting of bad loans by lenders, prompting regulatory action by the Reserve Bank of India.

Last month, SBI in a circular noted that disclosures in respect of divergence and provisioning are in the nature of material events and hence necessitate immediate disclosure. Further, this information is also price sensitive, requiring prompt disclosure by a listed entity.

Accordingly, the regulator has decided that "listed banks shall make disclosures of divergences and provisioning beyond specified threshold, as mentioned in aforesaid RBI notifications, as soon as reasonably possible and not later than 24 hours upon receipt of the Reserve Bank's Final Risk Assessment Report (RAR), rather than waiting to publish them as part of annual financial statements".

The SBI has reported the loan divergence to the exchanges, as per the direction of market regulator Securities and Exchange Board of India (Sebi). DP DP BAL BAL

(This story has not been edited by www.businessinsider.in and is auto–generated from a syndicated feed we subscribe to.)
You are subscribed to notifications!
Looks like you've blocked notifications!
Next Article