All issues with RBI resolved: Bhatt

State Bank of India (SBI), the country's largest lender, today said all issues with the Reserve Bank of India (RBI) regarding the latter's observation on underestimated bad loans and inflated capital had been sorted out.

"This report came sometime during this financial year and we had discussions with RBI. In most cases, they (RBI) have agreed with what the bank has said. In many of the cases, there were genuine interpretational differences. Let me also say, as on the end of September when we had our half yearly results, at that point of time, whatever residual issues, if any were totally resolved. There is no issue any more," SBI Chairman O P Bhatt said on the sidelines of a press meet.

Media reports said the central bank had downgraded SBI a notch, from B to B-, following an inspection of the bank's books for the financial year ended March 2009.

"In any audit, there are certain things discovered which may or may not be true, which may or may not be as a result of right understanding," he added.

"There is definitely a case that what the auditors thought should be the correct financial statement, some officials of RBI who came to the bank for financial inspection thought slightly different in certain cases," Bhatt said.