“It was found out during our inspection that the bank’s mechanism for identifying bad loans is also deficient,” the official cited the RBI as having said, adding that the bank’s non-performing assets could be higher than what’s been reported. Asenior IDBI executive said the bank was not aware of any such communication and that the observations of the RBI could pertain to March 2017. Gross non-performing loans were pegged at Rs 50,622 crore at the end of December 2017, 24.72% of advances. The letter comes amid the debate over the regulator’s oversight of state-run banks. RBI governor Urjit Patel had said earlier this month that the central bank did not have enough powers to regulate staterun banks effectively.

Source: Economic Times March 30, 2018 01:30 UTC