Punjab National Bank (PNB) under-reported bad loans by ₹2617 crore for the fiscal year 2018-19, a Reserve Bank of India (RBI) risk assessment report found.
Divergence in gross non-performing assets (NPAs) assessed by the RBI stood at ₹2,617 crore in FY19 and that of net NPAs was also ₹2617 crore.
The bank reported gross NPAs of ₹78,472.70 crore, while RBI’s assessment figure was ₹81,089.70 crore.
In the same way, it reported net NPAs of ₹30,037.66 crore, compared to RBI’s assessment of ₹32,654.66 crore.
Further, the difference between RBI findings and what PNB reported in provisioning for bad loans in the said year was ₹2,091 crore. Based on this, the latter would have reported a net loss of ₹11,335.90 crore instead of net loss of ₹9,975.49 crore.
Provisions for NPAs made by the bank in FY19 stood at ₹48151.15 crore but it needed to provide ₹50,242.15 crore, Mint report said.
State-lender in 2018 had disclosed a $2 billion fraud, which stunned the country.
Earlier, SBI also under-reported bad loans.
Photo By Reuters