NPA Crisis

RBI to comb bank books to unearth hidden bad loans

The RBI is set to intensify its scrutiny of banks’ financial accounts during the annual financial inspection process.

  1. The regulator is trying to achieve the goal of cleaning up bank balance sheets by March 2017.
  2. Till now, there has been a discrepancy in the NPA numbers that banks report and what the RBI finds during the annual inspections.
  3. Banks have to make a 5% provision for standard assets while provisioning for a sub-standard asset is 15-20%.
  4. The gross NPAs of public sector banks were at 6% at the end of June.

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