CAG raps govt-owned banks for understating non-performing assets

Govt told to be consistent on capital infusion criteria

The Comptroller and Auditor General of India (CAG) has slammed the managements and statutory auditors of 12 public sector banks (PSBs) for overstating their net profit, by underestimating non-performing assets (NPAs) and under-providing for these bad assets during 2016-17.

Also, there were differences in the classification of and provisioning for assets between five banks and the Reserve Bank (RBI) but as the divergence did not fall within the criteria fixed by the latter, it had not been disclosed by these lenders, the audit watchdog said in its report, presented to Parliament on Friday.

The 12 PSBs are Allahabad Bank, Bank of Maharashtra,