RBI tightens NPA disclosure norms, asks banks to reveal bad loans

RBI's plan is to allow loss-making banks to go easy on their disclosure.

The Reserve Bank of India (RBI) on Monday changed the disclosure norms for banks on material divergences on provisioning, stating that banks will now have to disclose their provisions if the divergence found is more than 10 per cent of the bank’s profit before provisioning and contingencies.

Earlier, the norms were that banks required to disclose additional provisioning requirements if divergences were found to be exceeding 15 per cent of the published net profits after tax.

The central bank retained the norms on divergence on gross non-performing assets (NPAs), which continues to be a material divergence of 15 per cent,