Bank of Baroda (BoB) underreported bad loans by ₹5,250 crore for the financial year 2018-19, a risk assessment report of the Reserve Bank of India has revealed.
In an exchange filing on Tuesday, Bank of Baroda said that it reported gross non-performing assets for the year ended March 2019 at Rs 69,924 crore. However, it said that as per the RBI report, the gross NPAs stood at Rs 75,174 crore, resulting in gross NPA divergence of Rs 5,250 crore, CNBC TV18 reported.
Net NPAs for FY19 reported by the bank were Rs 23,795 crore while the RBI assessed the net NPAs at Rs 29,045 crore. Divergence in net NPAs was Rs 5,250 crore. Further, divergence in provisions for NPAs stood at Rs 4,090 crore.
The bank said that out of Rs 4,090 crores divergence in provision for NPAs, it has already made provision of Rs 1,475 crore during the current financial year. Hence the remaining impact is Rs 2,615 crore, it added.
The bank’s shares declined 3 per cent after the news of under-reporting.