SEBI New Disclosure Framework for all Listed Banks

Published on July 19, 2019
Current context: SEBI has tightened the disclosure framework for all listed banks due to divergence in bad loan recognition
SEBI New Disclosure Framework for all Listed Banks
  • As per SEBI’s new norm, if the additional provisioning of NPAs identified by RBI exceeds 10% of the reported profit before provisions and contingencies, then all the listed banks have to disclose to the stock exchanges divergences in the asset provisioning and classification
  • Earlier, the threshold for the NPAs provisioning was 15% of the reported profit
  • It also added that if the additional gross NPAs accessed by the RBI exceed 15% of the published incremental gross NPAs, then the disclosure will be mandatory
  • The steps taken by SEBI aims to align the disclosure norms with the RBI’s modified disclosure requirements
  • In April 2019, RBI in a notification asked banks to disclose Bad loans exceeding 10% of profit before provision and contingencies

Question: 

Q.1 According to the disclosure norms of SEBI, all listed banks have to disclose the NPAs exceeding ____% of the reported profit before provisions and contingencies?
a. 15%
b. 10%
c. 20%
d. 25%

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