RBI asks banks to closely monitor telecom loans as debt mounts3 min read . Updated: 19 Apr 2017, 04:15 AM IST
RBI tells banks to make higher provisioning for good loans in stressed sectors such as telecom, asks bank boards to review exposure by 30 June
The Reserve Bank of India (RBI) on Tuesday advised banks to consider setting aside higher provisions even for good loans in stressed sectors. The advisory means the central bank is worried that banks have not fully recognized their bad loans, said experts. Indian banks are sitting on a toxic loan pile of at least Rs7 trillion, or 9% of all bank credit.
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