Viral Acharya says 50% provision reasonable

Viral Acharya said banks used various restructuring schemes to delay provisions

Reserve Bank of India (RBI) Deputy Governor Viral Acharya said on Friday the level of provisioning mandated by the regulator for large stressed loans is appropriate and expressed hope that in a year or two, the central bank would get a handle on the bad asset situation in banks.
 
Acharya confirmed the central bank has asked banks to set aside 50 per cent provisions for accounts being resolved through the insolvency law, and termed the same as “very reasonable”.
 
“I think the provisions are very reasonable based on any historical recovery rates, even on secured debt typically earned