Public lenders Bank of India and Indian Overseas Bank have reported discrepancies in their Non-Performing Assets (NPAs) for the fiscal that ended March 2019, which caused widening of net losses for the year.
As per the regulatory filing of the Chennai-based Indian Overseas Bank, the bank reported a net non-performing asset (NPA) divergence of Rs 358 crore for 2018-19, as a result of whuch the divergence in provisioning came in at Rs 2,208 crore.
The bank has an adjusted loss of around Rs 5,999.88 crore in the fiscal ended March 2019, more than Rs 3,737.88 crore shown earlier, due to the divergence.
As per Risk Assessment Report of RBI subject to certain conditions, banks are mandated to report the divergence in asset classification and provisioning for NPAs which is the gap between the bad loans as notified by the lenders and that assessed by the regulator.
Bank of India on the other hand had witnessed a dip its net NPA divergence by Rs 329 crore for 2018-19, because the NPAs reported by the bank were more than that assessed by the RBI.
However, the bank’s net loss for the year inflated to Rs 6,992.90 crore from Rs 5,546.90 crore as revealed by the bank due to divergence in provisioning requirement.
As mentioned by Bank of India, the divergence in provisioning for the year was reported at Rs 1,446 crore.