Mumbai: Banks will continue to make heavy provisions towards doubtful loans for the fourth quarter with lenders initiating insolvency proceedings against two dozen of the 28 large defaulters referred to them by the Reserve Bank of India (RBI).
The central bank’s norms require that if insolvency proceedings are started against a borrower, banks will have to set aside as provisions half the loan amount from their quarterly profits. The provisions are necessary as banks are likely to recover only a small fraction of their money from these loans.
The list of 28 companies referred to banks by the RBI include big names like Videocon Industries, Videocon Telecom, Ruchi Soya, Jayaswal Neco, Essar Projects, Orchid Pharma, IVRCL E…
Read the full article at: https://timesofindia.indiatimes.com/business/india-business/insolvency-proceedings-to-take-toll-on-banks-profits/articleshow/62330248.cms
