​​​
  1. RBI relaxes bad loans provisioning rules for banks

RBI relaxes bad loans provisioning rules for banks

The Reserve Bank of India (RBI) on Monday relaxed provisioning rules against bad loans by allowing banks to...

By: | Mumbai | Updated: March 30, 2015 3:44 PM
Reserve Bank of India, RBI rules, RBI provsioning rules, banks bad loand, bad loans, bad loans by banks, Bank NPAs, Raghuram Rajan, Raghuram Rajanbank NPAs, business news

The relaxation will be applicable for floating provisions held by banks as of the end of December 2014. (In photo: Guv Raghuram Rajan)

The Governor Raghuram Rajan-led Reserve Bank of India (RBI) on Monday relaxed provisioning rules against bad loans by allowing banks to set aside up to 50 percent of floating provisions from 33 percent.

Floating provisions are the amount that banks set aside that are above the mandatory provisioning requirement against bad loans established by the central bank.

The relaxation will be applicable for floating provisions held by them as of the end of December 2014.

Banking stocks extended gains to session high of 1.8 percent following the news.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

  1. No Comments.

Go to Top