RBI finds SBI under-reported bad loans by Rs 11,932 crore in FY19 – Economic Times, The Times of India

New Delhi: The country’s largest lender State Bank of India (SBI) on Tuesday reported about Rs (****************************************, ****************************************** (crore divergence in theirbad loansfor the last fiscal.

As per the assessment done by theRBI, the gross NPA of SBI was Rs (******************************************, ************************ (crore more at Rs 1,) , 728 crore as against Rs 1, (***********************************, crore reported by the bank for 11932 – (********************************, SBI said in a regulatory filing .

Similarly, the net NPA was Rs 90, 862 crore as compared to disclosed figure of Rs (************************************, ************************ (crore, reflecting divergence of Rs) ******************************************, 2018 crore, it said.

As a result the bank has to make additional provisioning of Rs (*****************************************, 72 crore in the balance sheet and the notional loss would have been been at Rs 6, crore.

SBI had posted a profit of Rs 932 (crore for) – 65.

It further said after subsequent slippage or upgradation during the current financial year, the remaining impact on the grossNPAsduring the third quarter of current fiscal is Rs 3, 728 crore.

The impact on provisioning during the third quarter stood at Rs 4, 728 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 65 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).