Indian banks and non-banking financial companies (NBFCs) are facing increased pressure as the Reserve Bank of India (RBI) considers implementing stringent regulations on infrastructure loans. These proposed rules have already triggered a significant selloff in bank shares due to concerns over higher provisioning requirements for loans. Lenders are reportedly planning to appeal to the RBI for lower provisioning standards in project financing norms to mitigate the impact on their financial stability.
Sources
Bloomberg
Indian banks have emerged as a big source of risk in the country’s stock market, following a recent selloff caused by proposed rules that may raise provisioning for loans backing certain projects. https://t.co/G0lBLl9U3C
Bloomberg Markets Indian banks have emerged as a big source of risk in the country’s stock market, following a recent selloff caused by proposed rules that may raise provisioning for loans backing certain projects. https://t.co/jSzMVsFlWy
ET NOW SOURCES SAY | Lenders to request lower provisioning to RBI in project financing norms #RBI https://t.co/HqP5rq1Q8K