Securities & Exchange Board Of India Revises Disclosure Regulations For Listed Banks Regarding Provisioning Assets
[ By Bobby Anthony ]Disclosure requirements for listed banks regarding divergence in provisioning of assets have been revised by markets regulator Securities & Exchange Board of India (SEBI).The market regulator stated in a circular issued on July 17 that the changes made in disclosure norms are in line with revised Reserve Bank of India (RBI) requirements.The SEBI circular has stated...
Disclosure requirements for listed banks regarding divergence in provisioning of assets have been revised by markets regulator Securities & Exchange Board of India (SEBI).
The market regulator stated in a circular issued on July 17 that the changes made in disclosure norms are in line with revised Reserve Bank of India (RBI) requirements.
The SEBI circular has stated that henceforth listed banks would have to disclose to stock exchanges any divergences in asset classification and provisioning.
This would have to be done if additional provisioning for NPAs assessed by the RBI exceeds 10% of the reported profit before provisions and contingencies for the reference period, the SEBI circular stated.
Earlier, this threshold was fixed at 15%.
According to the SEBI circular, disclosure will be mandatory in case additional gross NPAs identified by the RBI exceed 15% of the published incremental gross NPAs for the reference period.
In this connection, it may be recalled that an RBI notification issued in April had asked banks to disclose bad loan divergences in their financial statements if the additional provisioning exceeded 10% of profit before provision as well as contingencies.