*RBI unlikely to ease Provisioning load for Banks* 🏦
- Banks are hoping to escape from hard provisioning norms by RBI on its stressed assets
- However, RBI shall soon direct lenders to set aside 50% provision on Stressed Loans and 100% where National Company Law Tribunal (NCLT) offers for insolvency proceedings
- 50 Stressed companies which account for 4 Lakh crore stressed load are from Metal, Construction and Power Industries
What do u understand by Stressed Assets?
- Stressed Assets includes NPAs + Restructured Loans + Written off Assets
- NPAs in context to Bank means any credit facility on which borrower is unable to repay back principal and interest installment and remain unpaid for specific time period
- NPAs are further categorized to Standard, Sub-Standard, Doubtfully and Bad Assets accordingly
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