Why did RBI ask banks to increase prudential provisioning for bad loans?

Public Sector Undertaking (PSU) banks and private banks are in a much better shape now than before. Therefore, the Reserve Bank of India (RBI) has advised banks to set aside specific provisioning towards their exposure to top 20 business conglomerates of India.

The move is to lean on the side of caution and should not be construed as any ‘warning signal’ from the regulator, said a source on anonymity.

The Hindu businessline’s Chief Research Analyst Hamsini Karthick explains in this episode of News Explained. Tune in to know more.

Read the full story here.

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