Banks need Rs 18,000 cr to resolve 12 NPA accounts flagged by RBI: Ind-Ra

The extra provisioning needed would reduce the profits of creditor banks by 25%, ROA by 12 bps

Indian banks need to provide a bare minimum of Rs 18,000 crore additionally towards 12 big-ticket bad accounts identified for insolvency resolution, says India Ratings and Research (Ind-Ra).

In June 2017, the Reserve Bank of India (RBI) had asked lenders to refer 12 identified accounts to the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code.

The ratings agency estimated the current average provisioning towards these accounts at 42 per cent. The extra provisioning needed would reduce the profits of creditor banks by 25 per cent and reduce the return on assets by 12 basis points in the