SBI reports bad loan divergence of Rs 11,932 crore for FY19

Government-owned State Bank of India (SBI) on Tuesday reported bad loan divergence of Rs 11,932 crore for the last financial year.

The country's largest lender also reported divergence of Rs 12,036 crore in provisioning for the financial year ended March this year.

Gross non-performing assets (NPAs) reported by the bank stood at Rs 1.73 lakh crore as on March 31. However, gross NPA as detected by the Reserve Bank of India (RBI) was at Rs 1.85 lakh crore.

While the bank provided Rs 1.07 lakh crore against bad loans, the provisioning requirement as assessed by RBI stood at Rs 1.19 lakh crore.

As a result, the bank's Q4 net profit of Rs 838 crore stands adjusted to a net loss of Rs 6,986 crore after taking the additional provisioning into account.

SBI said there will be the subsequent impact of Rs 3,143 crore on gross NPAs, Rs 687 crore on net NPAs and Rs 4,654 crore on provisioning against bad loans in the third quarter of the current financial year.

The divergences were part of the bank's risk assessment report by RBI for the financial year 2018-19.

In October, the Securities and Exchange Board of India (SEBI) asked publicly traded banks to disclose bad loan divergences with the RBI's assessment within a day of receiving a final report from the banking regulator, tightening norms for asset quality disclosures.

Last month, SBI said disclosures in respect of divergence and provisioning are in the nature of material events and hence necessitate immediate disclosure. Further, this information also prices sensitive, requiring prompt disclosure by a listed entity.

Accordingly, the RBI has decided that listed banks will make disclosures of divergences and provisioning beyond the specified threshold as soon as reasonably possible and not later than 24 hours upon receipt of the regulator's final risk assessment report, rather than waiting to publish them as part of annual financial statements.

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