SBI under-reported bad loans by Rs 11,932 crore in FY19: RBI report

Based on the divergence assessed by RBI in provisioning for bad loans, SBI said it would have reported a net loss of Rs 6,968 crore in FY19 as opposed to a profit of Rs 862 crore

Public sector lender State Bank of India (SBI) under-reported its non-performing assets for the fiscal year FY19, a risk-assessment report of the Reserve Bank of India has found. In a regulatory filing on Tuesday, the bank said it had under-reported its bad debts by Rs 11,932 crore.

The divergence in gross non-performing assets (NPAs) assessed by the central bank for SBI was Rs 11,932 crore in FY19. Similarly, the divergence assessed by the RBI in net NPAs was Rs 11,932 crore for FY19.

Also, the RBI found that SBI had made less provisions for its bad loans in FY19. The divergence found