{"id":3552,"date":"2019-05-28T06:55:25","date_gmt":"2019-05-28T01:25:25","guid":{"rendered":"http:\/\/yourcareerheights.com\/?post_type=news&#038;p=3552"},"modified":"2019-05-28T06:55:25","modified_gmt":"2019-05-28T01:25:25","slug":"some-banks-make-record-provisions-against-bad-loans","status":"publish","type":"news","link":"https:\/\/yourcareerheights.com\/?news=some-banks-make-record-provisions-against-bad-loans","title":{"rendered":"Some banks make record provisions against bad loans"},"content":{"rendered":"<div id=\"pl-3552\"  class=\"panel-layout\" ><div id=\"pg-3552-0\"  class=\"panel-grid panel-no-style\" ><div id=\"pgc-3552-0-0\"  class=\"panel-grid-cell\" ><div id=\"panel-3552-0-0-0\" class=\"so-panel widget widget_sow-editor panel-first-child panel-last-child\" data-index=\"0\" ><div class=\"panel-widget-style panel-widget-style-for-3552-0-0-0\" ><div\n\t\t\t\n\t\t\tclass=\"so-widget-sow-editor so-widget-sow-editor-base\"\n\t\t\t\n\t\t>\n<div class=\"siteorigin-widget-tinymce textwidget\">\n\t<h3>MUMBAI: Banks have used the past one year to improve their provision coverage ratio (PCR) as they clean up their books and strengthen balance sheets amid a slowdown in fresh additions to bad loans.<\/h3>\n<p>PCR is at record levels for some banks, which is a positive because it makes bank numbers more reliable and increases chances of a write-back from bad assets.<br \/>\nPCR is the ratio of provisioning to gross non-performing assets and indicates the extent of funds a bank has kept aside to cover loan losses. A 100% PCR means that a bank has set aside 100% of doubtful loans to cover eventual losses.<br \/>\n\u201cBanks have taken additional provisions during the quarter on ageing related NPAs and also in a few cases, 100% provisions on some NCLT accounts. This resulted in overall PCR going up for most banks. Higher PCR is certainly a positive outcome for banks,\u201d said Siddharth Purohit, analyst at SMC Global Securities.<br \/>\n\u201cBanks will continue to take additional provisions in FY20 as well, largely due to ageing related provisions, based on the RBI regulations.\u201d<br \/>\nA fall in new additions of nonperforming assets for banks has also resulted in higher PCR.<\/p>\n<div>Read more at:<br \/>\n<a href=\"https:\/\/economictimes.indiatimes.com\/articleshow\/69437481.cms?utm_source=contentofinterest&amp;utm_medium=text&amp;utm_campaign=cppst\">\/\/economictimes.indiatimes.com\/articleshow\/69437481.cms?utm_source=contentofinterest&amp;utm_medium=text&amp;utm_campaign=cppst<\/a><\/div>\n<\/div>\n<\/div><\/div><\/div><\/div><\/div><\/div>","protected":false},"excerpt":{"rendered":"<p>PCR is the ratio of provisioning to gross non-performing assets and indicates the extent of funds a bank has kept aside to cover loan losses. Some banks make record provisions against bad loans.Banks clean up books as NPA additions slow over the past year.<\/p>\n","protected":false},"author":1,"featured_media":3491,"comment_status":"open","ping_status":"closed","template":"","tags":[3,56,35,39,74,43,406],"news-category":[244,27,300,69,543,231,542],"class_list":["post-3552","news","type-news","status-publish","has-post-thumbnail","hentry","tag-banking","tag-baseliii","tag-economy","tag-loans","tag-npa","tag-psb","tag-recovery","news-category-bad-debts","news-category-banking","news-category-banks","news-category-npa","news-category-provision-coverage-ratio","news-category-provisioning","news-category-public-sector-banks"],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/news\/3552","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/news"}],"about":[{"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/types\/news"}],"author":[{"embeddable":true,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3552"}],"version-history":[{"count":0,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/news\/3552\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/media\/3491"}],"wp:attachment":[{"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3552"}],"wp:term":[{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3552"},{"taxonomy":"news-category","embeddable":true,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fnews-category&post=3552"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}