Q. In line with banking standards, Usha Thorat committee has proposed a lot of regulatory changes. If implemented, how would those impact your company?
A. We may be impacted due to higher provisioning norms against bad loans. The committee proposed to lower the period from 180 days to 90 days. Provisions will go up due to this. Consequently, profit margin will come down. In FY14, it proposes to adhere to 120 days and then by FY 2015 it will come down to 90 days. They want it to do this in a staggered format...........
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