Monday, July 1, 2013

More onus on bankers

..............In the case of banks, while RBI’s baseline case estimates expected losses to rise from 2% of advances right now to 2.1% by March 2014, the baseline case for unexpected losses is as high as 7% — while this is undoubtedly a tail risk, the RBI thought it important enough to say “therefore it would be prudent for the (banks) to increase their provisioning from the present levels”.............

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