This note had been sent about 10 days after RBI’s June 13 letter on the 12 companies. “For the rest of the things, RBI has not come out with anything yet. We will see what provisioning rules they come out with and then take a call.”Bank earnings have been savaged in past quarters following an RBI-mandated asset-quality review aimed at recognising bad debt. Higher provisioning across the board will further dent those numbers.Current provisioning norms vary widely based on the sector and tenure. While 148 companies have been admitted to the NCLT process, banks had factored in provisions only for the 12 accounts.India Ratings had estimated that additional provisions for the 12 companies could be as high as Rs 18,000 crore.

Source: Economic Times July 25, 2017 19:03 UTC