RBI ISE 2026 observations: assessed Total CRAR 16.53% against 17.93% calculated by the bank
In its ISE 2026 review, RBI observed Rs.3823 Crore of provisions for stressed standard assets were held in GPLR and Rs.2470 Crore was reckoned in Tier 2 capital.
By ScoutQuest · · 2 min read
- Specific provision for stressed standard assets held in GPLR
- Rs.3823 Crore
- Amount incorrectly reckoned in Tier 2 capital
- Rs.2470 Crore
- Understatement of Credit RWA (no CCF on undrawn UCC exposures)
- Rs.22,079 Crore
What the bank told the exchanges
In a disclosure under Regulation 30 of the SEBI (LODR) Regulations, 2015, the bank set out observations made by the RBI as part of its Inspection for Supervisory Evaluation (ISE) 2026, and placed side by side the Risk Weighted Assets and CRAR as on 31.03.2026 calculated by the bank and as assessed by RBI.
What RBI observed
- Specific Provision attributed to Standard Assets with probable stress in particular assets/segments amounting to Rs.3823 Crore had been included as part of General Provisions and Loss Reserves (GPLR).
- An amount of Rs.2470 Crore had been incorrectly reckoned as part of the bank's Tier 2 Capital.
- Credit Conversion Factor (CCF) was not applied to undrawn exposures on accounts with Unconditional Cancellability Clause (UCC), resulting in under estimation of Credit RWA by Rs.22,079 Crore. The bank's stated premise was that the UCC was included in the respective sanction letters and was duly acknowledged by the respective borrowers.
How the two assessments compare
- Credit Risk Weighted Assets: 398512 (Rs. in Crore) as assessed by RBI, higher than the figure calculated by the bank
- Total RWA: 459737 (Rs. in Crore) as assessed by RBI
- Common Equity Tier 1: the same figure in both calculations
- Tier 2 Capital: 4234 (Rs. in Crore) as assessed by RBI, lower than the figure calculated by the bank
- Total CRAR: 17.93% as calculated by the bank, 16.53% as assessed by RBI
What the bank says
- The RWA and CRAR as assessed by RBI as part of ISE 2026 does not have any impact on the Net Profit as on March 31, 2026 reported by the bank.
- The CET 1 CRAR and Total CRAR of the bank as on 31.03.2026 are well above the RBI specified minimum CET 1 CRAR and Total CRAR.
- The bank has already factored the aforesaid aspects of RBI in calculation of RWA and CRAR of the bank for the quarter ended on September 30, 2026.
What this means for a retail investor
The disclosure compares two sets of numbers for the same date. The difference arises from three things: how much of a provision for stress in standard assets was parked in the general pool, how much of it was counted towards Tier 2 Capital, and whether a credit conversion factor was applied to undrawn exposures. RBI's assessment carries higher Risk Weighted Assets and lower Tier 2 Capital, which is why the CRAR it assessed is lower than the bank's own calculation. The bank states the exercise does not change the Net Profit it reported.
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More numbers
- Specific provision attributed to standard assets held in GPLRRs.3823 Crore
- Amount incorrectly reckoned as part of Tier 2 CapitalRs.2470 Crore
- Under estimation of Credit RWA (CCF not applied to undrawn UCC exposures)Rs.22,079 Crore
- Credit Risk Weighted Assets assessed by RBI398512 (Rs. in Crore)
- Total RWA assessed by RBI459737 (Rs. in Crore)
- Tier 2 Capital assessed by RBI4234 (Rs. in Crore)
- Total CRAR calculated by the Bank17.93%
- Total CRAR assessed by RBI as part of ISE 202616.53%
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