Norms that applied to commercial banks on disclosing divergence in asset classification and provisioning will hold good for urban cooperative banks (UCBs) also, the Reserve Bank of India (RBI) on Tuesday said.
Banks will make disclosures if they satisfy either of the two conditions: First, when additional provisioning for non-performing assets (NPAs) assessed by the RBI exceeds 10 per cent of the reported profit before provisions and contingencies; second, when additional gross NPAs identified by the regulator exceed 10 per cent of the reported incremental gross NPAs.
It gives a leeway to UCBs, for which the threshold for reported incremental gross NPAs will be 15 per cent. This threshold will be reduced progressively for UCBs in a phased manner after review, RBI said.
The disclosure conditions will also kick in if the additional GNPAs identified by the regulator exceed 5 per cent of the reported incremental gross NPAs, it added.