SBI revises NPAs by Rs 1,400 crore less

The State Bank of India said it has discovered an anomaly in the computation of stressed assets for the September quarter, which reduces the slippages by around Rs 1,400 crore but clarified that it has no bearing on the final ratios as the upgrades have also gone down.

Accordingly, the nation’s largest lender’s fresh slippages stand revised at Rs 7,108 crore down from Rs 8,500 crore as reported on the earnings day, while its upgrades for the quarter also comes down to Rs 1,660 crore from the earlier Rs 3,000 crore, a senior bank official said.

“This is a rationalisation of the accounts and does not make any impact on the key ratios like net non-performing assets and gross non-performing assets,” Chief General Manager (Financial Control) Sunil Pant said. He added that the anomaly was discovered during the post-results analysts meet last Friday evening.

During the quarter, three accounts worth Rs 1,398 crore started as standard assets, became NPAs during the period, but later got upgraded, Pant said, adding this is a case of “inflated counting” which occurred at both the slippage as well as upgradation ends.
“The computer captured both the upgrade as well as the downgrade,” he said.

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