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Why Street looked past IDBI Bank's NPA divergence

With gross bad loan ratio already over 21%, analysts say situation can't get worse

IDBI

On May 13, when the Street came to know that YES Bank’s non-performing assets (NPA) figure for FY16 was higher from the Reserve Bank of India’s (RBI) assessment, the bank’s stock plunged 6 per cent. Axis Bank and ICICI Bank stocks had also taken a beating for this reason. However, that wasn’t the case with IDBI Bank. On Tuesday evening, the Street came to know about IDBI’s Rs 6,816-crore divergence in reporting of FY16’s NPA. The bank reported a gross NPA of Rs 24,875 crore, while the RBI assessed it at Rs 31,692 crore, a divergence of 27 per ...