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The Reserve Bank of India (RBI) has found divergence of ₹259 crore in provisioning of gross non-performing assets by City Union Bank Ltd. (CUB) for FY22.
The RBI conducted on-site Inspection for Supervisory Evaluation for FY22 from October 7 to November 18 and the final meeting concluded on December 19, the private sector lender said in a regulatory filing.
CUB said the divergence was to the tune of ₹259 crore consisting of 13 borrower accounts (outstanding balance of more than ₹1 crore) for an amount of ₹230 crore and 218 borrowers (outstanding balance of less than ₹1 crore) for an amount of ₹29 crore.
Out of the above, four accounts constituting ₹60.41 crore and one account with a balance of ₹36 lakh have already been classified as NPA during the first half-year ended September.
As on date, two accounts totalling ₹4.07 crore and 55 accounts for ₹9 crore stand closed.
The divergence in provisioning, as per the filing, was ₹40 crore. The adjusted (notional) net profit for FY22 after taking into account the divergence in provisioning is ₹719 crore against ₹760 crore.
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