IDBI Bank’s gross NPA divergence Rs6,816 crore for FY16
IDBI Bank reported gross non-performing assets (NPAs) of Rs24,875.07 crore as on 31 March 2016, whereas RBI assessed gross bad loans of Rs31,691.67 crore
Latest News »
- Unhealthy eating habits, obesity linked to Indian restaurants: research
- Punjab CM Amarinder Singh offers DSP post to cricketer Harmanpreet Kaur
- HomePod: The reason Apple needed a Siri movie featuring Dwayne ‘The Rock’ Johnson
- Nagaland CM Zeliang expands Cabinet with induction of one more minister
- CRPF company commander thrashed by subordinates after jawan’s death
Mumbai: IDBI Bank Ltd on Tuesday said that the divergence between its own gross bad loan estimates and those made by the Reserve Bank of India (RBI) was Rs6,816.60 crore at the end of 2015-16.
The private sector bank made this disclosure in its audited financial results for 2016-17.
More From Livemint »
The state-owned bank reported gross non-performing assets (NPAs) of Rs24,875.07 crore as on 31 March 2016, whereas the stock of gross bad loans stands at Rs31,691.67 crore as per the assessment of the central bank.
Accordingly, the provisions money—kept aside to cover bad loans—also saw a divergence of Rs2,061.00 crore for 2015-16. The bank provided Rs10,231.68 crore in the previous fiscal, lower than the RBI’s assessment figure of Rs12,292.68 crore, following a directive from the RBI.
In May, IDBI Bank was put under RBI’s prompt corrective action after its bad loans surged. As at the end of March 2017, bank’s gross bad loans were over Rs44,750 crore.
IDBI Bank joins ICICI Bank, Axis Bank, RBL Bank and Yes Bank to make such disclosures after the central bank asked lenders to do so.
On 18 April, the RBI told banks to state bad loan divergence in their financial statements if it exceeded 15%.
Subscribe to Our Newsletter »
Following such disclosures, the Institute of Chartered Accountants of India (ICAI) had written to the RBI, seeking information on the divergence in bad loan estimates by some lenders and the central bank, Mint reported on 29 May.
ICAI’s disciplinary directorate wrote to RBI on 24 May seeking “specific information/details such as details of inspection by RBI with relevant documents to be made available to ICAI and further requesting them to file a formal complaint, if they so desire”, a spokesperson for the auditors’ body said in a written reply to Mint’s queries.