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Mar 31, 2015
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RBI relaxes norms for NPA provisioning
The Reserve Bank of India (RBI) has allowed banks to use 50 per cent of their counter-cyclical provision buffer for specific bad loan provisioning, compared to the current 33 per cent. This will provide relief to banks, struggling with a rise in non-performing assets (NPAs).
The move comes a day before the end of regulatory leeway of lower provisioning for standard restructured advances. From April 1, banks have to make provisioning for standard restructured advances in line with NPA provisioning — 15-20 per cent, depending on whether or not an asset is backed by a security.
Source -
http://www.business-standard.com
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