Photo: PTI Bankers are worried over RBI’s new diktat seeking higher bad loan provisioning
In what has come as a shocker for banks amid the ongoing bankruptcy proceedings as part of measures to tackle the bad loan menace, the Reserve Bank of India has reportedly asked banks to undertake a steep increase in provisioning requirements for loans being referred to the bankruptcy courts. The move could lead to a Rs 50,000-crore hit on their earnings this fiscal, an Economic Times report said citing two bankers familiar with the order.
As per the report, the RBI has told banks to set aside at least 50 per cent of the loan amount as likely losses for all cases referred to the insolvency process. The regulator also said that provisioning s…
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