 "Finance Ministry")
The finance ministry may assess the capital requirement of public sector banks after the September quarter as there would be greater clarity about a spike in bad loans by that time, sources said.
There is widespread fear that non-performing assets (NPAs) of the banks will witness a surge due to the economic slowdown triggered by the Covid-19 outbreak and resultant lockdowns.
This will need higher provisioning by banks as per the Reserve Bank of India (RBI) guidelines. However, there could be a silver lining if RBI accepts request of loan restructuring for sectors hit badly by the coronavirus pandemic, sources
