Bank of Baroda underreported bad loans by ₹5,25...

Bank of Baroda underreported bad loans by ₹5,250 crore in FY19: RBI report

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https://www.livemint.com/industry/banking/bank-...



Public sector lender Bank of Baroda (BoB) underreported bad loans by 5,250 crore for the financial year 2018-19, according to Reserve Bank of India’s risk assessment report.


In a filing to the stock exchanges late on Tuesday, the public-sector lender said the divergence in gross non-performing assets (NPAs) assessed by the central bank stood at   5,250 crore in FY19. The divergence in net NPAs was also   5,250 crore for the fiscal.


Also, the divergence in provisioning for bad loans in FY19 was to the tune of   4,090 crore. Of the   4,090 crore divergence in provisions for NPAs, the bank had already made provision of   1,475 crore during the current financial year which reduces the impact to   2,615 crores, the statement said.

7 Comments  |  
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Bob sucks

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Paise nikal lo kya acc se

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I think, the stock will run up since there wont be any more unreported losses.

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There are different methods RBI and banks deploy to look at NPAs. Some loan accounts were out if NPA some time back and again drifted back in NPAs. They started recovering and stopped as borrower defaulted on next payment. So difference was inevitable. RBI should stop messing with banks. It is a regulator not a ruler. RBI dictates bank like hell and they and their policies are the reason for 50% of NPAs as it was only Govt, MPS, MLAs in past who pressurized banks to lend money to ineligible people. I have around 50 known people working with banks and they are of same opinion that Govt and RBI is more of a bigger hurdle than the banks in recovery. Just because of messed up policies many are wilful defaulters as people are in fear over getting tracked by IT Dept. if they even returns loans in one go.

Forget about other recently in March this year our firm reversed loan worth Rs.57 lacs in one go and paid pre-payment penalty to bank. After few months we were asked by notice from IT dept. from where this money came? The ITO tried to made us culprit but we put him down to knees. laughing

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chingumboy wrote:

There are different methods RBI and banks deploy to look at NPAs. Some loan accounts were out if NPA some time back and again drifted back in NPAs. They started recovering and stopped as borrower defaulted on next payment. So difference was inevitable. RBI should stop messing with banks. It is a regulator not a ruler. RBI dictates bank like hell and they and their policies are the reason for 50% of NPAs as it was only Govt, MPS, MLAs in past who pressurized banks to lend money to ineligible people. I have around 50 known people working with banks and they are of same opinion that Govt and RBI is more of a bigger hurdle than the banks in recovery. Just because of messed up policies many are wilful defaulters as people are in fear over getting tracked by IT Dept. if they even returns loans in one go.

Forget about other recently in March this year our firm reversed loan worth Rs.57 lacs in one go and paid pre-payment penalty to bank. After few months we were asked by notice from IT dept. from where this money came? The ITO tried to made us culprit but we put him down to knees. laughing

Thanks for sharing experience ..

One question that has amused me if it is good thing that bank’s are made to declare more NPAs now (gives them a fresh start next year) or if it will better to hide the NPAs so that everyone is happy (but possibly dreamy) about bank’s health in short term but the cycle of bad loans reporting continues..

@rogerthat any thought from your experience

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indiansoul wrote:

Thanks for sharing experience ..

One question that has amused me if it is good thing that bank’s are made to declare more NPAs now (gives them a fresh start next year) or if it will better to hide the NPAs so that everyone is happy (but possibly dreamy) about bank’s health in short term but the cycle of bad loans reporting continues..

@rogerthat any thought from your experience

Hiding is everywhere. Sometimes u need to hide in life too to avoid panic situation. But it shouldn’t be done every now and then. Why bank needed to hide it? Will Govt ever take responsibility that whatever mess we are in today is because of Corporate-MP-MLA contacts? Why let off some people of loans for vote bank? Banks can never be blamed for messy situation of NPAs as most of the time pressure came from them to lend money without going much into quality.

Take the case of MUDRA scheme. Govt just ordered that you dont need to look much and MUDRA is like charity although banks are doing inspection too and letting go completely ineligible person. More than 60% of mudra loans aren’t recovering. But again MUDRA lending is peanut when compared to Big Corporate NPAs.

Some people blame demo for mess like Congis but they were the ones who under Chidambaram distributed money like a piece of paper. Then there comes those who show middle finger to banks when asked to repay their dues.

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indiansoul wrote:

Thanks for sharing experience ..

One question that has amused me if it is good thing that bank’s are made to declare more NPAs now (gives them a fresh start next year) or if it will better to hide the NPAs so that everyone is happy (but possibly dreamy) about bank’s health in short term but the cycle of bad loans reporting continues..

@rogerthat any thought from your experience

we are pawns in this big game.


corporate npa account are a few hundreds in each bank are many times thoses of retail npa.

Banks wants to hide even govt wants to  hide by way of providing 180 days relief plus restructuring health running account.


Banks act on govt directive RightNow clueless what to do.


they do any random shit to create a diversion.






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