SBI Under-Reports Rs 12,000 Crore Bad Loans: RBI

by GoNews Desk 1 month ago Views 962
SBI Under-Reports Rs 12,000 Crore Bad Loans: RBI
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The Reserve Bank of India (RBI) has said that the State Bank of India (SBI), the country’s largest bank, has under-reported its Non-Performing Assets (NPAs) in the year 2018-2019 by around Rs 12,000 crore. It has also under-reported provisioning by around Rs 12,000 crore.

This is the largest figure declared by any bank in this financial year.

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According to the RBI’s assessment, SBI’s gross NPAs are Rs 1,84,682 crore and not Rs 1,72,750 crore, as SBI has declared. Also, the net NPAs are Rs 77,827 crore, and not Rs 65,895 crore. This clearly means that SBI will have to show this amount in its balance sheets, due to which its losses will be around Rs 6968 crore.

SBI had posted a profit of Rs 862 crore in the year 2018-2019. However, the bank says that the load of total NPAs in the third quarter of 2019-2020 is Rs 3,143 crore. It will be Rs 4,654 crore in the third quarter of 2020-2021.

In the year 2016-2017, the RBI had instructed all banks to submit to it full particulars of their NPAs and how this loss will be recovered. Following this, SBI had informed the RBI about NPAs amounting to Rs 23,239 crore, which was the highest in the country.