ICAI proposes joint audit for Private Banks

To enhance the quality of audit the Institute of Chartered Accountants of India (ICAI) has proposed an introduction of a new concept of joint audit in private banks to the Finance Ministry and the Reserve Bank of India.

This process follows questions over the auditors in an estimation of NPA’s of some private sector banks.
 
Recently 3 banking sector players have reported gross NPA figures in 2015-16 which are in variance with RBI estimation.
 
According to the body, the variances can be due to various reasons including differences in interpretation of some clauses of RBI circulars, availability of additional information with RBI officials at the time of inspection as compared to the information available at the time of finalisation of accounts by the bank, test check of accounts etc- informed a leading business daily.
 
Axis Bank gross NPA for FY16 reported to be Rs 6088 crore as against RBI’s figure of Rs 15,556 crore.

ICICI Bank gross NPA for FY16 reported to be Rs 26,211 crore as against RBI’s figure of Rs 31,326 crore.     

Yes Bank reported gross NPA for FY16 reported to be Rs 749 crore as against RBI’s figure of Rs 4176 crore. #casansaar (Source -  PTI, Indiainfoline)