The government on Wednesday said banks should have a minimum of 10% exposure in big consortium loans to ensure greater say. Banks have also been asked to tie up with specialized monitoring agencies for credit exposure above Rs250 crore. Separately, banks have to also comply with large exposure framework of the RBI. Starting 1 April 2019, banks’ exposure to a group of connected companies will be at capped at 25% of the lenders’ core or Tier 1 capital. He added that only 4-5 large banks in India would have the appetite to comfortably fund a single exposure in excess of Rs3,000-4,000 crore.

Source: Mint January 25, 2018 07:18 UTC