SEBI Asks Banks to Disclose NPA Divergence and Provisioning Within 24 Hours
Moneylife Digital Team 01 November 2019
Market regulator SEBI has asked all listed banks to disclose divergences and provisioning beyond specified threshold, as soon as reasonably possible and not later than 24 hours upon receipt of the Reserve Bank of India (RBI)’s final risk assessment report (RAR), instead of waiting to publish them as part of annual financial statements.
 
SEBI says, banks will have make disclosures in either or both the cases where additional provisioning for non-performing assets (NPAs) assessed by RBI exceeds 10% of the reported profit before provisions and contingencies for the reference period, and the additional gross NPAs identified by RBI exceed 15% of the published incremental gross NPAs for the reference period.
 
At present, banks disclose NPA divergences and provisioning in their quarterly reports. 
 
Earlier in April this year, RBI had mandated banks to disclose certain cases of divergence in asset classification and provisioning in their notes to accounts in the ensuing annual financial 
statements published immediately following communication of such divergence by the central bank to the lender.
 
"These disclosures in respect of divergence and provisioning are in the nature of material events or information and hence, necessitate immediate disclosure. Further, this information is also price sensitive, requiring prompt disclosure," SEBI says in the circular. 
 
Here is the format in which banks are required to submit NPA divergence and provisioning...
 
Comments
Dr.Dhananjaya Bhupathi
7 years ago
https://www.moneylife.in/article/sebi-asks-banks-to-disclose-npa-divergence-and-provisioning-within-24-hours/58560.html1. Kudos to Shri Shakthikanth Das, RBI Governor for the initiative he has taken.
2. Next is fraud-generating IBA & UFBU. Entire IBA + UFBU members possess assets disproportionate to known sources of income. PSB/SBI boards, CMDs, CEOs, EDs are harbingers for the creation of big size NPAs. If Modi 2.00 does not want to open Pandora’s box by inquiry, action----entire Banking structure may be in the doldrums. Instead, GOI may formulate guidelines to encourage corruption-free Bank Promotions, Boards and appointment of CMDs, etc.
3. Lest Karma Yogi, PM’s efforts to mobilize the US $.5 trillion shall go under the drain & his dream becomes a pipe-dream.
4. https://www.youtube.com/watch?v=4Si8U02s8cQ.
5. SATYAMAEVA JAYATHE!!!
Dr.Dhananjaya Bhupathi
7 years ago
Why beat around the bush? ORGANIZED CRIME BY IBA,DUDS OF ADHOCISM IN PMO/UFM:
IBA [1945], a voluntary organization is neither registered nor its accounts are audited. IBA about Rs.200 crores annually from 253 members, PSB, Private & co-op banks, etc., towards membership fees & bribes the powers that be through 3Ws-WINE, WOMAN & WEALTH. IBA IS OMNIPOTENT TO SEEK PAID stay orders, appeals + JUDGMENTS against HC/SC judgments also.
Shri Shaltikanth Das, RBI Governor penalizes erring PSBs for violation/non-compliance of policy guidelines. But, none in PMO/UFM ever bothers to penalize for IBA for its callousness & misdeeds; BY OVERT SILENCE. SINCE NONE CAN DESIST THE INFLUENCE OF 3Ws!!!
Ramesh Poapt
7 years ago
there are many other 'divergences' always overlooked by SEBI!
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