Indian Bank reports Rs 1,004-crore divergence in provisioning for bad loans

The bank had reported a provisioning of Rs 6,131.86 crore for non-performing assets, while the RBI had assessed provisions of Rs 7,135.85

Indian Bank has reported a divergence in provisioning of Rs 1,004 crore during the year ended March 31, 2019. The bank had reported a provisioning of Rs 6,131.86 crore for non-performing assets, while the Reserve Bank of India (RBI) had assessed provisions of Rs 7,135.85.

The bank on Friday submitted to the exchanges a report of divergence in asset classification and provisioning for NPAs according to the risk assessment report of the RBI for 2018-19. With a divergence in provisioning, the adjusted notional net loss for the year came to Rs 333.21, against the reported net profit of Rs 321.95 crore (both figures after considering deferred tax assets).

The market regulator on Thursday directed all listed lenders to make disclosures pertaining to divergences and provisioning within a day of receipt of the RBI’s final risk assessment report.