Bad loans crisis: Yes Bank, ICICI Bank, Axis Bank under-reported NPAs
Posted on 13th May 2017 |
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| Private sector lenders might have substantially under-reported their bad loans, the ensuing provisions and their impact on net profit in FY16, disclosures mandated by the Reserve Bank of India (RBI) revealed. YES Bank, for instance, on Friday said it had under-reported gross non-performing assets (NPAs) to the tune of `4,177 crore in FY16. According to its FY17 annual report, while the bank had reported gross NPAs of Rs 749 crore in FY16, the RBI supervision found the gross NPAs to be at `4,926 crore in the same period.
On the net NPA front as well, the central bank found a divergence of Rs 3,319 crore between the bank’s reported numbers and the numbers as assessed by the RBI.
This, according to the disclosure, would have led to an increase in provisioning by Rs 858 crore in FY16. Taking into account the additional provisioning requirement, the bank’s net profit for the same period would have been `1,978 crore, instead of `2,539 crore it had reported.
“With ongoing remedial actions undertaken by the bank during FY 16-17, there have been several reductions/exits/improvement in account conduct which have reduced the overall gross NPA outstanding to `1,040 crore as on March 31, 2017,” the bank said in its annual report.
In a separate statement, YES Bank said there is “no carry forward impact of the divergence observed by the RBI in FY17-18”.
Shares of YES Bank on the BSE closed at Rs 1,483.85 crore on Friday, down 6.04% from their previous close.
The disclosure is a result of a recent central bank circular mandating banks to report the divergence between the numbers reported by them and as assessed by the RBI for gross NPA, net NPA, provisions and net profit in FY16.
Other private sector lenders such as ICICI Bank and Axis Bank have also said the RBI had found NPA divergence in their books. At ICICI Bank, the under-reported gross NPAs stood at `5,105 crore and the additional provisioning requirement stood at `1,071 crore in FY16.
Axis Bank told analysts after declaring its Q4 FY17 results that the RBI had found gross NPA divergence of `9,478 crore, thereby taking the total bad loans in FY16 to `15,566 crore.
ICICI Bank and Axis Bank have not yet published their annual reports. |
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Bharti Airtel defers Q2 results till Nov 14 over ambiguity on AGR verdict
Posted on 29th October 2019 |
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Bharti Airtel said on Tuesday it has postponed its second-quarter earnings report to mid-November, as the wireless operator sought clarity on the court ruling asking telecom firms to cough up overdue payments to the government.
Shares of the company, which was expected to release its quarterly numbers later in the day, dropped 3.3 per cent in early trade. |
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Rupee slips 8 paise vs US dollar in early trade amid drop in oil prices
Posted on 7th October 2019 |
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The rupee on Monday opened eight paise lower at 70.96 against the US dollar amid drop in crude oil prices and rise in Asian equities. The domestic unit on Friday closed almost flat at 70.88 against after the Reserve Bank of India (RBI) in a widely expected move cut key interest rates by 0.25 percentage point. On a weekly basis, the local unit slumped by 32 paise. |
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LIC pips private insurers in first-year premium growth during April-August
Posted on 13th September 2019 |
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In the first five months of the current financial year, first-year premiums of life insurance companies grew by 39.84% (year-on-year) at Rs 1.05 lakh crore as compared to Rs 75,588.35 crore in April-August of 2018-19. Life Insurance Corporation of India (LIC) continued to grow at a faster pace compared to private insurance players, shows the data from the Insurance Regulatory and Development Authority of India (Irdai). |
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Apollo Hospitals rules out further stake sale
Posted on 13th September 2019 |
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Apollo Hospitals Enterprise (AHEL) has ruled out further dilution of promoters’ stake in the company. The company also said its Rs 1,337-crore stake sale of Apollo Munich Health Insurance with mortgage major HDFC will be concluded by October. Following these stake sales, the promoters’ pledged position will come down from a high of 76% to 54% by October and eventually to 20% by November or December, company sources said here. |
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World trusts India on Kashmir, not us: Pakistan minister Ijaz Ahmed Shah
Posted on 13th September 2019 |
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In a major embarrassment for Pakistan and its Prime Minister Imran Khan, the country's Interior Minister Ijaz Ahmed Shah, a retired brigadier, said the international community didn't believe Pakistan's narrative on Kashmir; instead it is India whose version is trusted. |
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