Post an assessment by the Reserve Bank of India of its non-performing assets (NPAs), Central Bank of India’s losses for 2018-19 stand revised at Rs. 6,430 crore.
Post an assessment by the Reserve Bank of India of its non-performing assets (NPAs), Central Bank of India’s losses for 2018-19 stand revised at Rs. 6,430 crore. The bank had earlier reported a net loss of Rs. 5,641 crore for the year ended March 2019.
Similarly, Indian Overseas Bank (IOB) revised its net loss for FY19 to Rs. 6,000 crore from Rs. 3,738 crore, as reported earlier. So far, five banks have disclosed divergences in asset recognition for FY19.
Central Bank of India clarified in an exchange filing the divergence in gross NPAs was Rs. 2,565 crore while for net NPAs, it was Rs. 1,777 crore. RBI assessed the lender’s gross NPAs at Rs. 34,921 crore and net NPAs at Rs. 13,110 crore.
Meanwhile, the bank reported a consolidated net profit of Rs. 139 crore in the September quarter. The lender’s gross NPAs came in at Rs. 33,497.22 crore, or 19.9%, of the gross advances.
The Sebi had, on October 31, asked listed banks to make disclosures of the divergences and provisioning beyond a specified threshold, within 24 hours after the RBI’s final risk assessment report. Earlier, banks were publishing this information as part of the annual financial statements.
The disclosures are to be made in either or both of the following cases — the additional provisioning for NPAs assessed by the RBI exceeds 10% of the reported profit before provisions and contingencies, and the additional gross NPAs identified by the RBI exceed 15% of the published incremental gross NPAs.