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RBL Bank reports bad loan divergence at Rs339 crore for FY16

LiveMint logoLiveMint 06-07-2017 Alekh Angre

RBL Bank Ltd on Thursday said that the divergence between its own gross bad loan estimates and those made by the central bank stood at Rs339.30 crore at the end of 2015-16.

The private sector bank made this disclosure in its annual report for 2016-17.

RBL Bank’s gross non-performing assets (NPAs) as assessed by the Reserve Bank of India (RBI) stood at Rs547.35 crore for 2015-16, the bank said in its annual report. It had reported gross NPAs of Rs208.05 crore as on 31 March 2016.

The divergence in provisions—the money kept aside to cover bad loans—stood at Rs137.40 crore for 2015-16, RBL Bank said in the annual report. It had provided Rs83.61 crore for bad loans in that fiscal.

RBL Bank’s disclosure comes after RBI in a directive dated 18 April told banks to state bad loan divergence in their financial statements if it exceeded 15%.

ICICI Bank, Yes Bank and Axis Bank have already reported such divergences.

In its annual report for 2016-17, Yes Bank Ltd said that as on 31 March 2016, its bad loan divergence stood at Rs4,176 crore—558% more than the Rs748.9 crore of NPAs it had reported for that year.

Similarly, Axis Bank’s bad loan divergence was 156%, or Rs9,478 crore, for FY16 while ICICI Bank’s was 19.5%, or Rs5,105 crore, for the same year.

All three banks have said that their latest audited statements (for FY17) fully reflect the impact of the bad loan divergence.

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