Allahabad Bank reports Rs 67 crore divergence in gross NPA

Kolkata: Kolkata: State-owned Allahabad Bank has reported Rs 67 crore divergence in gross non-performing assets in 2019, in stark contrast to State Bank of India's under-reporting of Rs 11,932 crore of bad loans for the same period.
Divergence in gross NPA is the difference in gross bad loans reported by banks and the assessment done by Reserve Bank of India.

Allahabad Bank had reported Rs 28705 crore gross NPA as on March 2019 while RBI assessed its gross NPA at Rs 28772 crore.

In a regulatory filing in stock exchanges, the bank said that divergence in NPAs as of March 2019 will not impact its gross NPAs and net NPAs for the thrid quarter as the accounts underlying had already been marked as NPA and provided for suitably in the first quarter.

The bank also said that it had provided Rs 21261 crore against bad loans in 2019 while according to RBI's assessment it should have provided Rs 21714 crore, making the divergence in provisioning against bad loans at Rs 453 crore.

Banks are reporting divergence in bad loan provisioning within 24 hours of receiving RBI’s risk assessment report, following market regulator Sebi's stricter disclosure norms.