Disclosures of Divergences in Asset Classification by Listed Banks

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Dec 30, 2019

Disclosures of Divergences in Asset Classification by Listed Banks

Previously, listed banks were required to make disclosures of divergences in asset classification and provisioning beyond specified thresholds, as part of the annual financial statements. By way of circular dated October 31, 2019, SEBI has now mandated that such disclosures be made not later than 24 hours of receipt of the RBI final risk assessment report, if (i) the additional provisioning for non-performing assets (‘NPA’) assessed by RBI exceeds 10% of the reported profit before provisions and contingencies for the reference period, and/or (ii) the additional gross NPAs identified by RBI exceed 15% of the published incremental gross NPAs for the reference period.

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