Private banks under-reporting NPAs may lose premium edge

The big divergence between the non-performing assets (NPAs) reported by some private sector banks and those assessed by the RBI will reduce the premium these banks command among investors and will increase the gap between them and their tier I counterparts, analysts said. Investors will now look at Yes Bank, ICICI Bank and Axis Bank with a different lens after they under-reported their NPAs by 1% to 4% in the fiscal ended March 2016. Source : ET