SBI says that bad loans for fiscal year 19 were underestimated by Rs 12k cr
MUMBAI: bad loans reported by State Bank of India in its annual results for FY19 were Rs 11,932 million rupees lower than those identified by Reserve Bank of India during your annual inspection of the lender. Consequently, provisions for non-productive assets were also lower at Rs 12,036 million rupees.
The impact on the results of the next quarter of SBI will be limited as it has already provided or improved almost three quarters of the underestimated amount. As a result, the remaining impact of gross NPAs in the third quarter of fiscal 2016 will be only Rs 3,143 million. Against this, the bank must make additional provisions of Rs 4,654 crore.
The price of the bank's shares fell more than 1% to close at 313 rupees after the disclosure. According to analysts, more public sector banks could report divergences, as there are multiple lenders for large loans and SBI has typically been conservative among public sector banks.
So far Bank of India , Central Bank, Union Bank , Indian Overseas Bank , UCO Bank and Yes bank They have announced divergences in their NPAs after the RBI concluded its inspection.
In October 2019, the market regulator, Sebi, forced banks to disclose divergences in the NPA classification to investors as soon as the regulator identifies them as `` important events. '' In addition, this information is also price sensitive, which requires immediate disclosure, Sebi said in his circular. Previous banks had to reveal the divergence along with their financial results.
RBI has recently completed its SBI inspection for fiscal year 19. In a statement issued to the stock exchanges on Tuesday, the bank said it had reported gross NPAs of Rs 1.72,750 while RBI in its recent inspection assessed the same in Rs 1,84,682 crore. The net NPAs were also underestimated by s 11,932 million rupees to Rs 65,895 million rupees.