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Half yearly/quarterly review of accounts of public sector banks

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RBI/2015-16/186
DBS. ARS.No. BC. 5/08.91.001/2015-16
September 23, 2015
All Public Sector Banks
Dear Sir/Madam,
Half yearly/Quarterly Review of Accounts of Public Sector Banks
Please refer to our circulars DBS.ARS.No.BC.13/08.91.001/2000-01 dated May 17, 2001, DBS.ARS.No.BC. 4/08.91.001/2001-02 dated October 25, 2001 and DBS.ARS.No. BC.17/08.91.001/2002-03 dated June 5, 2003 on conduct of Half yearly/Quarterly Review of Accounts of Public Sector Banks.
2. It is clarified that Concurrent Auditors shall henceforth submit their NPA review reports to the banks and not to Statutory Central Auditors (SCAs) undertaking the half yearly/quarterly review. Concurrent Auditors will therefore give their opinion on NPA figures to the banks and not to the SCAs, who for audit purpose will treat the branches covered by Concurrent Auditors as unaudited branches [para I (ii) of Annexure III of circular dated May 17, 2001].
3. SCAs, as in the past, will continue to review top 20 branches for half yearly/quarterly reviews and take into account review reports of overseas branches of public sector banks audited by the respective statutory auditor. SCAs will necessarily cover advances adversely commented upon in the latest inspection report of RBI, special audit/special scrutiny, if any carried out by the bank, RBI or any other agency, so that all problem accounts are taken care of during half yearly/quarterly review.
4. The balance portion of stipulated 50% of advances and NPAs, to be covered for half yearly/quarterly review, will be reviewed by SCAs through Core Banking System of the banks and management inputs viz. internal inspection reports, review reports by concurrent auditors etc. made available to them by banks. Consequently, the format for “Specimen of the Review Report” to be submitted by SCAs is revised and enclosed as Annex II.
5. The other instructions, as amended from time to time, shall remain unchanged.
6. Please acknowledge receipt.
Yours faithfully
(Indrani Banerjee)
Chief General Manager

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