NPA divergence of Rs 29,000 cr in 12 banks: Why there is more to accounting jugglery than meets the eye -Dinesh Unnikrishnan
* The stark divergence in banks’ estimates vs that of the RBI has raised many eyebrows in the investor community prompting them to avoid such companies till clarity emerges
* Recently, Bank of Baroda reported a divergence of Rs 5,250 crore in gross NPAs for the year ended March 2019
* Ever since divergences came to public, banks have begun to make higher provisions to cover up the mess
An element of trust deficit is taking hold in the investor community towards banks that have under-reported their non-performing assets (NPAs) in the last fiscal year but was caught later by the Reserve Bank of India (RBI) inspection team. The small investors now prefer to stay away from such companies till the firms come clean on the corporate governance issues, analysts say.
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Firstpost.com, 23 December, 2019, https://www.firstpost.com/business/npa-divergence-of-rs-29000-cr-in-12-banks-why-there-is-more-to-accounting-jugglery-than-meets-the-eye-7817241.html?fbclid=IwAR1OGDp