NEWS & ADVICE : PERSONAL LOAN
Banks may increase provisioning to Rs 15000 cr in next two years
By Vaibhav Aggarwal
Feb 4, 2013
Print    Email    RSS   

A report released by Crisil indicates that banks will have to increase their quantum of provisions by Rs. 15,000 crore for the period of April 2013 to March 2015, if Reserve Bank of India executes the draft norms relating to restructuring of loans in the present form.

This move may reduce the profitability of banks by about 7 percent during the said period. But Crisil, which is a credit rating organization, called the removal of regulatory forbearance of RBI towards restructured advances and the stricter loans restructuring processes as positive steps.

Commenting on the central bank's proposed guidelines, Crisil said that these steps will increase stakeholder's trust and confidence in the asset quality of banks and may deter loan restructuring activities on a large scale.

The effects of greater provisioning will be more visible on state owned banks, as around 85 percent of total restructured loans belong to them. The process of restructuring of advances is expected to continue in the immediate future, but, at a slow rate.

Reportedly, if RBI's proposed norms on classification of assets and the guidelines on provisioning of restructured loans get implemented, then, the amount of bad loans reported by banks may witness a steep rise.


(Comments Posted : 0) Post Your Comments
Show All Comments
COMPARE QUICKLY
 Select a product:
 

CALCULATE QUICKLY
 Select a product:
 

EDITORS' PICKS
Need of Financial inclusion: making the...
How to decide on a loan for business?
Which is better: personal loan or gold loan?
Guidelines to apply for NRI Personal Loans
12 point conduct checklist for bank and...


HOTEL: CaℒL Giℛℒs In Kharar 09855660911...
Model Escoℛts Service In Pune 8888IOO484 Caℓℓ...
What is the outstanding Amount for my personal loan

NEWS THIS WEEK
LVB bank joined hands with NCML Feb 18, 2015
Syndicate Bank hiring 5000 new staff Feb 12, 2015
SBI donated Rs 8.6 cr as a part of CSR activity Feb 11, 2015
Canara Bank tied up with NHBC Feb 9, 2015
Hiring for Probationary clerks in South Indian Bank Feb 5, 2015
News Archive