SBI Under-Reported Bad Loans by ₹11,932 Cr. in FY19, Finds RBI Report

0

Mumbai: In a major blow to the reputation of India’s largest public sector bank, State Bank of India (SBI) has under-reported bad loans by ₹11,932 crore in FY19, a Reserve Bank of India (RBI) risk assessment report said.

The central bank found that the divergence in provisioning for these non-performing assets (NPAs) stood at ₹12,036 crore in FY19, SBI said in a regulatory filing on Tuesday.

Based on RBI’s findings, it would have reported a net loss of ₹6,968 crore instead of its reported profit of ₹862 crore for FY19.

SBI, however, said the remaining impact on gross NPAs during Q3 FY20 is estimated at ₹3,143 crore since some it has already been recognized in the first two quarters of FY20. Likewise, the remaining impact on provisioning during Q3 FY20 is seen at ₹4,654 crore.

In October,  markets regulator Securities and Exchange Board of India (Sebi) asked publicly traded banks to disclose bad loan divergences with the RBI’s assessment within a day of receiving a final report from the banking regulator, tightening norms for asset quality disclosures.

Leave A Reply

Your email address will not be published.