ICAI seeks clarity on SBI's FY11, FY12 provisioning norms
Institute of Chartered Accountants of India (ICAI) plans to write to State Bank of India (SBI) to seek knowledge about the higher provisioning norms in Q4FY11. They want to know whether provisioning is a one off item or is it a yearly practice.
June 10, 2011 / 21:07 IST
Saikat Das
moneycontrol.com
The institute of Chartered Accountants of India (ICAI) plans to write to State Bank of India (SBI) seeking clarity on the higher provisioning made during 2010-11 as well as provisioning to be made in FY12. Speaking about it on Friday, G Ramaswamy, president, ICAI said: "We want to understand the accounting practice behind such provisioning norms. We will talk to all auditors (16) of the bank as to know what accounting practice they have followed. We would communicate with regulators including RBI and SEBI in this connection." India's largest lender SBI's fourth quarter net profit (2010-11) tumbled nearly 99% year-on-year on higher provisioning against non-performing assets and gratuity. It made a provision of Rs 4157 crore versus Rs 2349 crore a year ago. Out of the total provision, the bank has earmarked Rs 3264 crore for NPAs as against Rs 2187. Gratuity provision rose to Rs 1565 crore as against Rs 46 crore in FY10.The company's provision for NPAs was up 49% at Rs 3,264 crore versus Rs 2,187 crore, year-on-year. Its gross NPA stood at 3.28% versus 3.05%, YoY. Its net NPA was at 1.63% versus 1.72%, YoY.On aspect which ICAI is looking at include pension provisioning
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