- State Bank of India (SBI), the country’s largest lender, under-reported bad loans by ₹11,932 crore in FY19, a Reserve Bank of India (RBI) risk assessment report has found. The central bank found that the divergence in provisioning for these non-performing assets (NPAs) stood at ₹12,036 crore in FY19
- The public sector lender added that had it taken into account the provisions 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.
- Divergence in bad loans and provisions arise when a bank’s and RBI’s assessments differ. 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.
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