![RBI proposes new norms for banks' loan loss provisions](https://images.assettype.com/fortuneindia%2F2022-04%2F1595c306-598b-46ca-8356-a3cca68ab582%2FRBI.jpg?rect=0,120,1920,960&w=300&q=95)
RBI proposes new norms for banks' loan loss provisions
The central bank proposes to amend the regulations governing loan loss provisioning to incorporate a more forward looking "expected credit losses approach".
The central bank proposes to amend the regulations governing loan loss provisioning to incorporate a more forward looking "expected credit losses approach".
The central bank unveils liquidity facility of ₹50,000 crore for access to emergency health services, and ₹10,000 crore for small finance banks’ on-lending, among a slew of measures to fight Covid-19.
While Indian banks' improved financial metrics do not fully reflect the impact of the Covid-19 pandemic, the under–capitalised PSBs are likely to remain risk averse and lose market share.
Apart from recapitalisation, public sector banks get a shot in the arm in the form of ARC and AMC mechanisms to clean up their books.