Reserve Bank of India recently pointed out that State Bank of India (SBI) under-reported bad loans by Rs 11,900 crore during FY 2019. The public sector bank, in an exchange filing, had said that the RBI assessed the bank's gross non-performing assets at Rs 1.85 lakh crore in FY19, whereas the bank had disclosed gross NPAs of Rs 1.73 lakh crore.

The resulted in the divergence of over Rs 11,900 crore.

Here's an explainer on what this means for the bank and the shareholders.