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ICAI to submit report to RBI on bank NPAs
March, 23rd 2015

The Institute of Chartered Accountants of India (ICAI) would submit a report on rising NPAs in the banking sector to the Reserve Bank in a month.

"The institute had formed a study group comprising former CMDs of public sector banks who are trained CAs to prepare a report on the rising levels of NPAs in banking system," council member of ICAI Sumantra Guha said.

The report would be submitted to the Reserve Bank within a month, Guha said at a seminar on bank audit organised by ICAI here today.

He said that report would suggest on how to manage NPAs by the banks.

Of the 27-odd public sector banks, NPA levels of 13 of them were more than 13 per cent of their total assets amounting to Rs 2.63 lakh crore.

RBI had also urged these 13 banks to form a joint lenders forum.

Guha said as banks were facing rising NPAs, it was imperative that independent auditors be appointed.

"In places where public money is involved like PSUs and public sector banks, the auditors are appointed by CAG. But we hope that appointments of auditors should be done by an independent agency", he said.

 
 
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