Huge haircut needed on largest NPAs, says CRISIL

Estimates another Rs 40,000 cr provision needed for 12 a/cs sent for insolvency action by RBI

Rating agency CRISIL said the banks in question would need to find an extra Rs 40,000 crore as bad loan provisioning for the 12 big-size cases being referred, on Reserve Bank of India (RBI) order, to the National Company Law Tribunal (NCLT) for resolution.

These 12 large accounts had become non-performing assets (NPAs) on the banks' books by end-March 2016. CRISIL's study shows the banks had already provisioned 40 per cent for these NPAs worth Rs 2 lakh crore — that is, about Rs 80,000 crore.

CRISIL believes the lenders will have to take a haircut (the term for difference between the market value