MY KOLKATA EDUGRAPH
ADVERTISEMENT
Regular-article-logo Friday, 22 November 2024

RBI may ease bad loan norms

The government is discussing increasing the timeline by 30-60 days to classify a loan as a bad loan

Reuters New Delhi Published 18.03.20, 07:42 PM
Bank of India plans to raise $269 million via a qualified institutional placement, while Central Bank planned to raise $67 million this quarter.

Bank of India plans to raise $269 million via a qualified institutional placement, while Central Bank planned to raise $67 million this quarter. (Shutterstock)

The government and the RBI are considering giving relief to banks, aviation and other hospitality sectors hit by the coronavirus outbreak by relaxing bad loan classification rules, a source familiar with the matter said.

The government is discussing increasing the timeline by 30-60 days to classify a loan as a bad loan, the source said. At present, a debt not serviced for 90 days is classified as a bad loan.

ADVERTISEMENT

Meanwhile, two state-owned banks — Bank of India and Central Bank of India — that were aiming to raise funds to meet growth targets have shelved their plans because of the disruption to markets caused by coronavirus.

Bank of India plans to raise $269 million via a qualified institutional placement, while Central Bank planned to raise $67 million this quarter.

Follow us on:
ADVERTISEMENT
ADVERTISEMENT