You are here: Home » Economy & Policy » News
Business Standard

Indian banks need $2.8 bn more provisioning for bankruptcy cases: Ind-Ra

The 12 companies account for 1.78 trillion rupees ($27.7 bn) in non-performing bank loans: RBI data

Reuters  |  Mumbai 

debt, dues, loan

Indian taking 12 of the country's largest defaulters to bankruptcy under a central directive, will need to make additional provisioning of at least 180 billion rupees ($2.8 billion), Ratings and Research said on Tuesday.

Ratings, an affiliate of Fitch Ratings, estimated the current average provisioning towards those 12 accounts at 42 per cent, adding the extra provisioning needed would reduce the profits of creditor by about a quarter in the financial year to March 2018.

The Reserve of last month asked creditor to begin insolvency proceedings against 12 of the country's biggest loan defaulters, and subsequently mandated that the would need to make provision for up to 50 per cent of the amount of soured loans.

The 12 companies account for 1.78 trillion rupees ($27.7 billion) in non-performing loans, according to RBI data.

had total non-performing loans of about 7.29 trillion rupees, or 5 per cent of the gross domestic product, as of end-March.

First Published: Tue, July 18 2017. 13:07 IST