Monday, December 15, 2008

REVIEW OF PRUDENTIAL NORMS - PROVISIONING FOR STANDARD ASSETS AND RISK WEIGHTS FOR EXPOSURES TO COMMERCIAL REAL ESTATE AND NBFCS


  • Provisioning Norms: The provisioning requirements in case of Tier II UCBs for all types of standard assets stand reduced to a uniform level of 0.40 per cent except in the case of direct advances to agricultural and SME sectors, which shall continue to attract a provisioning of 0.25 per cent, as hitherto. Tier I UCBs will continue to make a general provision of 0.25% on all their standard assets
  • Loans and advances secured by commercial real estate: Such loans would attract a risk weight of 100 per cent as against the extant risk weight of 150 per cent.
  • Loans and advances to NBFCs: The risk weights on exposure to such companies will remain unchanged at 100 per cent.

0 comments:

Post a Comment