On account of low or negative net profit after tax, some banks are required to disclose divergence even where the additional provisioning is small, which is contrary to the governing intent that only material divergences should be disclosed, Reserve Bank of India (RBI)  said in observation, in the notification on Monday.
RBI asked banks to disclose their bad loan discrepancies in their financial statement if the supplementary provisioning exceeds 10 percent of profit before profit and contingencies.
Earlier, if the additional provisional requirements assessed by the RBI exceed 15 percent of the published net profits after tax for the reference period, banks were to make suitable disclosure.
In addition, RBI said in another notification regarding large exposures framework; non-centrally cleared derivatives exposures will be outside the purview of exposures limits till April 1, 2020.
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