provisioning up 1%Our Web Bureau / Mumbai January 31, 2007The Reserve Bank of India (RBI) today doubled the provisioning for credit card receivables and personal loans (PLs) to 2% from the existing 1%.The central bank, in its third quarter review of monetary policy issued today, said: "The continued high credit growth in the real estate sector, outstanding credit card receivables, loans and advances qualifying as capital market exposure and personal loans is a matter of concern. Furthermore, the data reveal higher default rates in regard to credit card receivables and personal loans. It has, therefore, become imperative to increase the provisioning requirement in respect of the standard assets in the aforesaid four categories of loans and advances (excluding residential housing loans) to 2% from the existing level of 1%. The provisioning requirement in respect of residential housing loans will remain unchanged at 0.4% for loans up to Rs 20 lakh and at 1% for loans in excess of Rs 20 lakh.""It has also been decided to increase the provisioning requirement for banks
