Banks staring at 20% more provisioning for Rs 2.2-trillion debt

Banks might have to make an additional 20 per cent provisioning in the March 2020 quarter if bad debts are not resolved after the deadline to restructure such debts under the Reserve Bank of India’s June 7 circular expired on Tuesday.

Bankers said they are looking outside the bankruptcy courts and will be able to resolve a few debts in the power sector before January-end. In such a case, they will not have to make provisions this quarter.

Banks have also asked for additional time from the regulator to resolve the pile of bad debt as they have an exposure