ICICI Bank on Friday said it had under-reported gross non-performing assets (NPAs) in FY16 to the tune of Rs5,104.61 crore. According to its FY17 annual report, while the bank reported gross NPAs of Rs26,221.25 crore in FY16, the Reserve Bank of India’s (RBI) supervision had found the gross NPAs to be at Rs31,325.86 crore in the same period.
On the net NPA front as well, the central bank found a divergence of Rs4,033.81 crore between the bank’s assessment and its own. The additional NPAs, according to the disclosure, would have led to an increase of Rs1,070.80 crore in provisioning during FY16. Consequently, the bank’s net profit for the period would have been Rs9,026.07 crore, instead of Rs9,726.29 crore it had reported.
“The impact of changes in classification and provisioning arising out of the RBI’s supervisory process for the year ended March 31, 2016, has been fully given effect to in the audited financial statements for the year ended March 31, 2017,” the bank said in the annual report.
The disclosure is a result of a recent central bank circular mandating banks to report the divergence between the numbers reported by banks and as assessed by the RBI for gross NPAs, net NPAs, provisions and the net profit in FY16.
Other private sector peers such as Axis Bank and YES Bank also said the RBI had found NPA divergence in their books. Axis Bank told analysts after declaring its Q4 FY17 results that the central bank had found gross NPA divergence of Rs9,478 crore, thereby taking the total bad loans in FY16 to Rs15,566 crore.
YES Bank had on May 12 released its annual report for FY17, where the lender said it had under-reported gross NPAs in FY16 to the tune of Rs4,177 crore.
While the bank reported gross NPAs of Rs749 crore in FY16, RBI’s supervision found the gross NPAs to be at Rs4,926 crore. The divergence in net NPAs was found to be to the tune of Rs3,319 crore.