Private sector lender IndusInd Bank today reported a divergence of Rs 1,350.20 crore in its gross non-performing assets (NPAs) for 2016-17 financial year.
Private sector lender IndusInd Bank today reported a divergence of Rs 1,350.20 crore in its gross non-performing assets (NPAs) for 2016-17 financial year. As per the bank, its gross NPAs as on March 31, 2017 stood at Rs 1,054.87 crore, while the same as assessed by RBI for the reported year stood at Rs 2,405.07 crore, IndusInd Bank said in BSE filing. Thus, the divergence in the gross NPAs for 2016-17 stood at Rs 1,350.20 crore.
As per an RBI directive in April 2017, banks have been advised to make disclosure in a prescribed format of the divergence in the asset classification and provisioning. The difference in bad loan proportion resulted in a notional adjustment into bank’s net profit for 2016-17 at Rs 2,639.62 crore. The bank had reported a net profit of Rs 2,867.89 crore in the year.
In terms of net NPAs, there was a divergence of Rs 1,001.12 crore as the bank reported net bad loans at Rs 438.91 crore. However, as per the RBI assessment, the divergence stood at Rs 1,440.03 crore. The divergence in provision for 2016-17 was at Rs 349.08 crore.
Of the gross NPA amount, Rs 33.18 crore has been written off, the bank said. An amount of Rs 118.80 crore has been sold to an asset reconstruction company, while Rs 257.80 crore loan was fully repaid in June 2017.
Further, the lender said Rs 518.52 crore was fully paid in June 2017 which was a large standard cement merger and acquisition bridge loan. Stock of IndusInd Bank closed at Rs 1834.10, down 0.57 per cent on BSE .