Throwing another lifeline to banks, the Reserve Bank of India has reduced the provisioning requirement for large accounts referred to the National Company Law Tribunal (NCLT) up to March 31, 2018.
This comes on fears that banks may be worse off due to bad loans provisioning when they declare their financial results for FY2018,
Provisioning for the secured portion of the large accounts (from the RBIs first and second list), which are currently undergoing corporate insolvency resolution process (CIRP) under the Insolvency and Bankruptcy Code (IBC) has been brought down from 50 per cent to 40 per cent.
This is expected to shore up the bottomline as the provisions made over the last couple of quarters get released (write-back), say bankers….
Read the full article at: https://www.thehindubusinessline.com/money-and-banking/rbi-cuts-provisioning-norm-for-advances-to-large-accounts-now-before-nclt/article23437043.ece
