RBI may approve 1-3% provisioning floor for stage-2 loans under ECL framework: Sources

The Reserve Bank of India could consider approving bankers’ request to lower the provisioning requirement on stage-2 loans to 1-3 per cent from proposed 5 per cent under the draft expected credit loss (ECL) guidelines, sources say.Bankers, in their representation to the RBI, have requested to reconsider proposal of making 5 per cent provision for stage-2 assets as they currently make only 0.4 per cent provision for most standard and stressed assets (refer to table for details on provisioning floors). They ...