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.
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