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Aashna Tripathi made post

What does the recent divergence of NPAs at Rs.2670 crore for Punjab National Bank announced by RBI, mean for PNB?

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Tisha Malhotra answered.
8 months ago

Divergence occurs when the NPA as reported by the bank in question is substantially lower than the NPA as per the record of the RBI. The RBI regulations stipulate that it has to be reported if the divergence is more than 15%. Just a few days earlier, the RBI had pointed out an INR7000 crore divergence in NPAs.

The divergence will mean two things. Firstly, the bank will now have to restate its accounts for the last fiscal and report a higher loss for the last fiscal. Secondly, it also raises questions over whether the NPAs reported by the PSU banks are really reflective of the actual situation or whether there could be more NPAs that may throw up a surprise in the coming quarters.