Banks will be able to recognise their stressed assets as non-performing more uniformly with an RBI directive calling for extra disclosure on asset categorisation, India Ratings (Ind-Ra) said today. The Reserve Bank (RBI) has asked banks to make additional disclosure on divergence in asset classification and provisioning. "The additional disclosure requirements for banks would compel banks to tighten their internal non-performing loans (NPLs) recognition and provisioning norms," it added. "It will improve the overall quality of disclosures and provide a platform for more uniform recognition of stressed assets as non-performing across different banks." In April, RBI had flagged concerns about banks' exposure to various sectors, including telecom, real estate lending, unhedged foreign and capital market exposure, among others.

Source: dna May 02, 2017 15:45 UTC