Bank of Baroda underreported bad loans by ₹5,250 crore in FY19: RBI report
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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.
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Paise nikal lo kya acc se
I think, the stock will run up since there wont be any more unreported losses.
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. 
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
Bob sucks