India central bank says auditors must not underestimate banks' provisioning needs

MUMBAI: Statutory auditors must not underestimate provisioning requirements while finalising financial statement of banks, Duvvuri Subbarao, governor of India's central bank said in a speech on Friday.

"In the Reserve Bank's view, in certain cases, the statutory auditors have underestimated the extent of net non-performing assets and the required provisioning," Subbarao said.

The Reserve Bank of India will release its mid-quarter review of the monetary policy around noon on Friday, where it is largely expected to hold interest rates steady.