Sebi asks banks to report divergence in bad loans

Directive follows an RBI circular that asked banks to disclose divergence in asset classification

The Securities and Exchange Board of India (Sebi) on Tuesday asked listed banks to make disclosures if the provisioning and non-performing assets (NPAs) assessed by the RBI had exceeded 15 per cent of their published financials.

“The banks shall disclose to the stock exchanges divergences in the asset classification and provisioning wherever: the additional provisioning requirements assessed by the RBI exceed 15 per cent of the published net profits after tax for the reference period; and/or the additional gross NPAs identified by the RBI exceed 15 per cent of the published incremental gross NPAs for the reference period,” Sebi said in