The Reserve Bank of India on Monday asked banks to disclose bad loan divergences in their financial statements if the additional provisioning exceeds 10 percent of profit before provision and contingencies.
In a notification, the RBI said it is observed that some banks, on account of low or negative net profit after tax, are required to disclose divergences even where the additional provisioning assessed by the RBI is small, which is contrary to the regulatory intent that only material divergences should be disclosed.
-
Indian Markets Turning Corner After Two Tough Years, Says Sandeep Tandon -
NDTV Profit Ignite 2026: Experts See Opportunity In Equities, Stay Bullish For Long-Term -
Buy Right, Sit Tight Does Not Work for Individual Stocks, Says Dinshaw Irani -
'Worst Is Behind': Quant MF Sees Market Bottom, Flags 'Extreme Euphoria' In Midcaps -
India's Mutual Fund Industry Could Become A $1 Trillion Opportunity, Say Fund Managers -
'Foreign Investors Are Baraatis': Raamdeo Agrawal's Take On LTCG Tax -
Stay Invested Through Market Cycles: Raamdeo Agrawal at NDTV Profit Ignite -
Ramesh Damani Remains Bullish On India For Next 20-30 Years, Sees Bargains Amid Market Weakness -
CAS Came After A Long Consultation Process: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFIT IGNITE -
Aim To Cut FPI Onboarding Time From Mth To Five Days: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFI
Therefore, it has been decided that henceforth, banks should disclose divergences, if "the additional provisioning for NPAs assessed by the RBI exceeds 10 percent of the reported profit before provisions and contingencies for the reference period".
Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay
Earlier, banks were to make suitable disclosures if the additional provisioning requirements assessed by the RBI exceeded 15 percent of the published net profits after tax for the reference period.
The RBI further said disclosure has also to be made if additional gross non-performing assets identified by the central bank exceed 15 percent of the published incremental gross NPAs for the reference period.
In another notification regarding large exposures framework, the RBI said non-centrally cleared derivatives exposures will be outside the purview of exposure limits till April 1, 2020.
However, banks must compute these exposures separately and report to the Department of Banking Regulation quarterly, it said.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
