The Reserve Bank of India's directive asking banks to make 10 per cent provisions on all moratorium loans will shave at least Rs 35,000 crore off their profitability in financial years 2019-20 and 2020-21, according to a report.
On Friday, the central bank, in its second set of liquidity-enhancing measures announced Rs 1 trillion specifically targeted fund infusion to small- and mid-sized shadow banks, home financiers and micro-lenders, which will ultimately go a long way in offering some succour to the small and medium enterprises.
"While the liquidity boosters will help the small lenders, the RBI has also stipulated banks