In a recent directive, all banks have been advised by the Reserve Bank of India to increase the Loan Loss Coverage Ratio.
One can only be in for some more surprises to understand what RBI is up to. Read on to know more about the loan loss coverage ratio’s latest news.
At an event held on Friday at the Indian Merchants’ Chamber, Mr. S S Mundra, the Reserve Bank of India Deputy Governor has announced that all the banks will have to increase the coverage ratio to a certain reasonable level.
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He also added that it would be better if they focus on the balance sheet rather than declaring their profit and the dividends.
As there have been sharp rise in the bad loans, RBI is considering the fact that the banks have to increase the loan loss coverage ratio. With this irregularities can be under control as well.
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