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NPA Resolution: Banks Need to Set Aside Another Rs. 10,000 Crores as Provisions
December 18, 2017
As the banks prepare to refer the unresolved bad loan accounts to the National Company Law Tribunal (NCLT), they need to set aside an additional Rs. 10,000 crores as provisions.
Concerned banks have provided 40%-45% for the stressed accounts so far. However, the RBI guidelines say that they have to provide 50% of the outstanding loans if they are unable to resolve the accounts and want to refer them to the NCLT. This means they need to set aside funds for the 5%-10% of the bad loans, which according to a news report stands at around Rs. 10,000 crores.
