The RBI on Wednesday asked banks to make sector-wise disclosure of their advances from 2014-15 onwards with a view to encourage them to actively manage exposure to various segments.
“Banks are advised to disclose sector-wise advances in the ‘Notes to Accounts’ to the financial statements as per the format...from the financial year 2014-15 onwards,” the RBI said in a notification.
Banks may also disclose advances to sub sectors where the outstanding advances exceed 10 per cent of the total advances to that sector, it said.
For instance, if a bank’s outstanding advances to the mining industry exceed 10 per cent of the total advances to industry sector, it should disclose details of its outstanding advances to mining separately in the format above under the industry sector, it added.
This disclosure requirement has been added based on recommendations of the Committee on Comprehensive Financial Services for Small Businesses and Low Income Households under chairmanship of Dr. Nachiket Mor to encourage banks to actively manage their exposures to various sectors, including priority sector.