Private banks under ICAI scanner for misreporting bad loans

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The apex body of chartered accountants, the Institute of Chartered Accountants of India (ICAI), sought information from the Reserve Bank of India (RBI) regarding divergence in bad loan estimates by the top private sector banks, reports livemint.com.

The report said that the 2015-16 financial statements of Axis Bank and Yes Bank’s will be taken up for survey by ICAI’s Financial Reporting Review Board (FRRB). FRRB may likewise embrace a survey of ICICI Bank’s financial statement..

RBI has done a review of banks’ book and discovered noteworthy difference in the benefit quality characterization in their financial reports.

In the event that the disparity surpasses 15 percent then banks need to make a revelation in their budgetary explanations, RBI told banks a month ago.

Yes Bank in its 2016-17 yearly report ordered terrible credits of Rs 748.9 crore, while RBI pegged the number higher by Rs 4,176 crore, a variety of 558 percent. Also, Axis Bank’s awful credit were higher by Rs 9,478 crore and ICICI Bank by Rs 5,105 crore from the exposure made in the yearly report.

RBI typically conducts inspection audits after a bank has released its annual results and a statutory audit has taken place. Experts were quoted as saying that while it is not odd for the RBI to point out divergences, this is the first time that the regulator has asked lenders to make this public.

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