New provisioning norms to cut bank profits by Rs 13k cr
fe Bureau: Mumbai, Feb 07 2013, 01:15 IST
6.6%.
Among the public sector banks, SBI has kept its restructured book at more manageable levels of 3.54% of advances, as of September 30, 2012. In case of private sector lenders, the proportion of restructured assets is much lower at 2.4% for Axis Bank, 1.5% for ICICI Bank and 0.3% for HDFC Bank.
M Narendra, CMD at Indian Overseas Bank, said new norms will definitely have an impact on the profitability of banks, but this will be manageable. “The number and size of restructuring cases will start moderating. The actual hit on earnings could be far less than what it appears now,” he said.
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