Bengaluru: The Reserve Bank of India (RBI) said on Monday banks should disclose bad loan divergences if the additional provisioning has exceeded 10% of the company’s profit before provision and contingencies.
An official at RBI told Ziraat Times this evening that the introduction of the new rule has no exceptions and will be applicable to J&K Bank too.
The central bank altered the additional provisioning requirements, which previously stated that banks should disclose divergences if the provisioning has exceeded 15% of net profit after tax.
The central bank did not change any rules that permit lenders to reveal divergences if the additional gross non-performing asset (NPA) exceeded 15% of the reported incremental gross NPAs.
With Reuters inputs