Banks’ Q4 provisioning likely to fall by Rs27,000 crore on RBI measures: Crisil
RBI’s move to ease provisioning requirements to cover losses on bond portfolio and cases referred for insolvency is likely to cut banks’ Q4 provisioning by Rs27,000 crore, says Crisil
Mumbai: Reserve Bank of India’s (RBI) decision to ease provisioning requirements to cover losses on bond portfolio and cases referred for insolvency proceedings is likely to reduce fiscal fourth quarter’s overall provisioning burden by Rs27,000 crore, said Crisil Ratings in a note Wednesday.
On 2 April, the central bank allowed banks to spread out the provisioning to cover losses on their government bond portfolio across four quarters.
Separately, it also gave banks time till June 2018 to reach 50% provisioning for accounts referred to National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code, Crisil said.
Banks now have to make 40% provisioning for IBC accounts for March 2018 quarter.
Editor's Picks »
- Mukesh Ambani vs Jeff Bezos set to begin from Gujarat
- Marco Pierre White: ‘Chefs are not geniuses or artists, they are just workers’
- RBI will take steps to help sustain growth: Shaktikanta Das
- India is at par with China in space race: Isro’s K. Sivan
- AAP rules out alliance with Congress for Elections 2019
- What to expect from Q3 results of IndiGo, SpiceJet, Jet Airways
- Forget privatisation, govt has hugged its banks tighter
- Flat profit, rising debt are growing worries for Reliance
- Q3 results: HUL growth off a high base shows it’s on a roll
- DCB Bank Q3 results: Small loans give big pain as farm, mortgages lift delinquencies