Money & Banking

Remaining impact of provisions under divergence at ₹358 crore: BoI

Our Bureau. Mumbai | Updated on January 08, 2021

Bank of India (BoI), on Friday, said the remaining impact of provisions under divergence as per the Reserve Bank of India’s (RBI) Risk Assessment Report (RAR) for the year 2019-20 is ₹358 crore.

Referring to the report of divergence in the asset classification and provisioning for non-performing assets (NPAs) as per the RBI’s RAR for the year 2019-20, the public sector bank said out of the ₹930-crore provisions under divergence, it has already made provision of ₹572 crore during the current financial year.

In its comments, BoI observed that total provisions under divergence is ₹930 crore, which includes divergence in provision for NPA of ₹394 crore, provision for investments of ₹23 crore, and shortfall in standard asset provisioning of ₹513 crore.

The divergence in gross NPA and net NPA as reported by the bank and as assessed by the RBI for FY20 was ₹63 crore each.

The divergence in provisions for NPA as reported by the Bank and as assessed by RBI for FY20 was ₹394 crore, the bank said in its regulatory filing.

After taking into account the divergence in provisioning, the bank’s net loss increased to ₹3,886.89 crore against ₹2956.89 crore reported in FY20, as per the filing.

Published on January 08, 2021

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