Friday, June 28, 2013

NPA clause of public sector banks likely to be changed


The government will reconsider a clause that requires all state-run banks to treat a borrower's account as non-performing if a loan to the company by any bank has become a bad asset in the books of that bank. PSBs, which had a net NPA of 2.12% in December 2012, have already in a representation to the finance ministry, sought to delete this clause citing increase in the provisioning amount that has to be made towards such accounts...........

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