Expect RBI to infuse liquidity in mid-quarter policy: SBI

RBI has met bankers to sensitize them about the rising bad loan situation. However, bankers say non-performing loans are at manageable level. Bankers have requested the central for some clarity on guidelines related to restructure accounts, reports CNBC-TV18.
  • Language
  • App
  • Subscriptions
  • Specials
  • Sign-In
  • Register
GeStepAhead Travelcafe
moneycontrol.com

Home » News » Economy

Mar 01, 2012, 12.15 PM | Source: CNBC-TV18

Expect RBI to infuse liquidity in mid-quarter policy: SBI

RBI has met bankers to sensitize them about the rising bad loan situation. However, bankers say non-performing loans are at manageable level. Bankers have requested the central for some clarity on guidelines related to restructure accounts, reports CNBC-TV18.

Like this story, share it with millions of investors on M3

Expect RBI to infuse liquidity in mid-quarter policy: SBI

RBI has met bankers to sensitize them about the rising bad loan situation. However, bankers say non-performing loans are at manageable level. Bankers have requested the central for some clarity on guidelines related to restructure accounts, reports CNBC-TV18.

Post Your Comments

Share Cancel

Pratip Chaudhuri , Chairman, SBI
RBI has met bankers to sensitise them about the rising bad loan situation. However, bankers say non-performing loans are at manageable level. Bankers have requested the central for some clarity on guidelines related to restructure accounts, reports CNBC-TV18.

Top bankers today sought more clarity from RBI about classification of bad accounts anddemanded that they be given flexibility in dealing with restructured loans.

"Today, there is a lot of mystery about what is a restructured asset. Everything restructured is seen as equivalent to NPA (non-performing asset) ... the restructuring definition should have a timeline," State Bank of India Chairman Pratip Chaudhuri told reporters outside the RBI headquarters after a two-hour-long meeting with the Reserve Bank officials.

"We wanted that RBI gives clear guidelines so that when the auditors come in there is no confusion and there is no divergence in approach," he added.

The Chairman of the largest lender, which in December reported a near 90% spike in NPA provisions, said the banks pointed out to RBI that after the probation period, if an account performs alright, it should not be branded as restructured for all the time.

Chaudhuri attended a specially-convened meeting with RBI Deputy Governor K C Chakrabarty called to assess the bad asset situation in the banking system.

Chaudhuri further said the classification of a recast account is a "gray area" now and hence banks have requested for a timeline of a year-long regular repayment by the restructured account to turn it as a standard asset.

It can be noted that a re-classification of accounts will help banks conserve capital as a restructured account demands more provisioning as opposed to a standard one.

(With inputs from PTI)

Ads by Google

Buy, Hold, Sell ? Hear it first on M3
Expect RBI to infuse liquidity in mid-quarter policy: SBI

See all

Get started using your favorite social network

or

Login using moneycontrol ID

Username
Password

Need help logging in? Reset password.

Don´t have an account? Sign Up

Get started using your favorite social network

or

Simply sign up using this short form

* mandatory

UserName*

Username should be atleast 4 character

Password*

Password should be 8 or more characters,
atleast 1 number, 1 symbol & 1 upper case letter

Alert

Your Password should contain
  • 8 or more characters
  • At least 1 number
  • At least 1 symbol
  • At least 1 upper case letter
Confirm Password*
Email
Already have an account? Login