Banks show Rs.10.3 lakh crore of NPAs

The Reserve bank of India (RBI) has started scrutiny of 200 large accounts to assess level of stress and provisioning done against these borrowers by respective banks.

The move is to contain the rising Non-Performing Assets (NPAs) in the banking system.

RBI is examining as to whether banks have followed prudential norms in respect of these stressed assets, according to a report by the Press Trust of India.

The RBI is also assessing classification, provisioning and debt recast in respect of the NPA loans.

This is a part of regular annual inspection of book of the banks that the central bank undertakes each year after the closure of the financial year, another official said.

This exercise comes at a time when gross NPAs in the banking system has risen to around Rs.10.3 lakh crore, or 11.2% of advances, compared to Rs.8 lakh crore, or 9.5% of total loan, as on March 31, 2017.

Media reports said some banks were caught for under-reporting of NPAs, with NPA reporting having started in 2016.

The RBI had tweaked the rules last year to make it compulsory for lenders to disclose under-reporting of bad assets. fiinews.com