Lenders to make Rs 5,000-crore provisions for Srei bad loans, say bankers

With Srei group exposures becoming bad loans in September, the immediate provisions that lenders have to make is over Rs 5,000 crore, bankers said.
 
Going by the Reserve Bank of India’s (RBI’s) norms, Srei exposure will be treated as substandard asset, the first stage of non-performing asset (NPA).
 
The banks will set aside around 15 per cent provision for secured loans. It would be higher for unsecured credit.
 
The total exposure — loans plus securities — to two Srei entities is pegged at Rs 30,000 crore. The RBI, on Monday, superseded the boards of Srei Infrastructure Finance