The Reserve Bank has ruled out any special dispensation on provisioning norms in case of debt recast, despite
banks facing mounting bad assets across sectors .
RBI , which had allowed some relaxation in provisioning against bad assets in the aftermath of the 2008 financial crisis, is not considering any such move at this time, Deputy Governor KC Chakrabarty told reporters on the sidelines of a conference organised by the central bank.
When asked if there is a move to bring in some special dispensation like the one offered in 2008, Chakrabarty said, "At present no".
"As of now there is nothing (no CDR proposals in front of the central bank)," he added.
Chakrabarty, who is scheduled to chair a meeting with 10 large banks to review the
non-performing assets (NPA) situation, said the meeting is to understand if there are any surprises in the offing and take necessary measures.
As things stand now, as per the numbers reported by leading banks, he said there is no cause for concern on the asset quality of banks.
However, anecdotal evidence suggests that asset quality is becoming a concern in various sectors, notably aviation, power and textiles, which has led to concerns being voiced.
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