Govt proposes tweaking new NPA framework, concerned with 24-hr default rule: Srcs

The government proposes to tweak the new NPA framework and are in talks with the banking regulator the Reserve Bank of India, reports CNBC-TV18 quoting sources.

The primary concern for the government is the one-day default timeline under the new non-performing assets framework and they want that removed, say sources.

Sources say removal of one-day default could save upto to Rs 20,000-30,000 crore of additional bank provisioning. However these estimates are not confirmed.

Ashvin Parekh of Ashvin Parekh Advisory Services and Krishnan ASV, Lead Analyst (BFSI),SBIcap Securities shared their views on the above development in an interview with CNBC-TV18.