Current context: SEBI has tightened the disclosure framework for all listed banks due to divergence in bad loan recognition
a. 15%
b. 10%
c. 20%
d. 25%
![SEBI New Disclosure Framework for all Listed Banks SEBI New Disclosure Framework for all Listed Banks](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh6GHKRkpDOi2riumTCxiJb9Cuml3Ky8blJGSdoHNw2zAqV2-KNqhxfGyhPv4v42YD0EQDa2WEcXbNuCsZRZhF76BKL8l4-L3_oXazT7CgiIjOchXiiogGx6XXk4JdFJ-DdM4XgNju74Myj/s320-rw/1-632.jpg)
- 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%