{"id":20608,"date":"2020-09-08T23:04:11","date_gmt":"2020-09-08T23:04:11","guid":{"rendered":"https:\/\/bengalnewstimes.com\/?p=20608"},"modified":"2020-09-08T23:04:11","modified_gmt":"2020-09-08T23:04:11","slug":"debt-restructure-fidc-seeks-waiver-on-10-additional-provisioning","status":"publish","type":"post","link":"https:\/\/bengalnewstimes.com\/?p=20608","title":{"rendered":"Debt restructure: FIDC seeks waiver on 10% additional provisioning"},"content":{"rendered":"<p><\/p>\n<div>\n<div class=\"article-image\">\n<figure><img loading=\"lazy\" decoding=\"async\" class=\"lazy lazy-hidden wp-image-2077511 size-full\" data-lazy-type=\"image\" src=\"https:\/\/images.financialexpress.com\/2020\/09\/Debt-restructure.jpg\" alt=\"Debt restructure,\u00a0FIDC,\u00a0Nirmala Sitharaman,\u00a0Reserve Bank of India,\u00a0NBFC,\u00a0NPA,\u00a0credit losses\" width=\"660\" height=\"440\" srcset=\"\" sizes=\"auto, (max-width: 660px) 100vw, 660px\"\/><noscript><img loading=\"lazy\" decoding=\"async\" class=\"lazy lazy-hidden wp-image-2077511 size-full\" data-lazy-type=\"image\" src=\"https:\/\/images.financialexpress.com\/2020\/09\/Debt-restructure.jpg\" alt=\"Debt restructure,\u00a0FIDC,\u00a0Nirmala Sitharaman,\u00a0Reserve Bank of India,\u00a0NBFC,\u00a0NPA,\u00a0credit losses\" width=\"660\" height=\"440\" srcset=\"\" sizes=\"auto, (max-width: 660px) 100vw, 660px\"\/><noscript><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-2077511 size-full\" src=\"https:\/\/images.financialexpress.com\/2020\/09\/Debt-restructure.jpg\" alt=\"Debt restructure,\u00a0FIDC,\u00a0Nirmala Sitharaman,\u00a0Reserve Bank of India,\u00a0NBFC,\u00a0NPA,\u00a0credit losses\" width=\"660\" height=\"440\" srcset=\"https:\/\/images.financialexpress.com\/2020\/09\/Debt-restructure.jpg 660w, https:\/\/images.financialexpress.com\/2020\/09\/Debt-restructure-300x200.jpg 300w, https:\/\/images.financialexpress.com\/2020\/09\/Debt-restructure-620x413.jpg 620w, https:\/\/images.financialexpress.com\/2020\/09\/Debt-restructure-401x267.jpg 401w, https:\/\/images.financialexpress.com\/2020\/09\/Debt-restructure-440x293.jpg 440w, https:\/\/images.financialexpress.com\/2020\/09\/Debt-restructure-80x54.jpg 80w, https:\/\/images.financialexpress.com\/2020\/09\/Debt-restructure-313x209.jpg 313w\" sizes=\"auto, (max-width: 660px) 100vw, 660px\"\/><\/noscript><\/noscript><span class=\"article-caption\">The letter mentioned that NBFCs follow Indian accounting standard (IND AS) norms on provisioning for credit losses.<\/span><\/figure>\n<\/div>\n<p><em><strong>By Ankur Mishra<\/strong><\/em><\/p>\n<p>Finance Industry Development Council (FIDC), the umbrella body for non-banking financial companies (NBFCs), has written to finance minister Nirmala Sitharaman, seeking a waiver on the additional 10% provisioning requirement for one-time restructuring of loans. The Reserve Bank of India (<a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/tag\/rbi\/\" rel=\"noopener noreferrer\">RBI<\/a>) had earlier mandated banks and NBFCs to provide 10% extra capital for restructuring of loan accounts impacted by Covid-19. The regulator on August 6 had allowed restructuring of personal and corporate loans with strict barriers.<\/p>\n<p>The letter mentioned that NBFCs follow Indian accounting standard (IND AS) norms on provisioning for credit losses. \u201cThese provisions are much higher than RBI norms,\u201d FIDC said. \u201cIndAS norms require provisioning to be done for credit losses on historical average and own experience of respective lenders and therefore, all accounts are adequately provided for,\u201d it added.<\/p>\n<p>The letter further said, \u201cWe, therefore, suggest that the additional provisioning requirement may be dropped for restructured accounts for NBFCs.\u201d FIDC also requested finance minister Nirmala Sitharaman for extending one-time restructuring to all standard accounts. Currently, the central bank allows only those accounts to be eligible for restructuring, which do not have dues more than 30 days as on March 1. The NBFC body has requested the finance minister that accounts which have dues till 90 days as on March 1, 2020, to be included for one-time restructuring. An account remains standard till 90 days of a default by borrower, before it is classified as non-performing asset (NPA) by lenders.<\/p>\n<p>Banks and NBFCs had earlier met finance minister Nirmala Sitharaman on September 3 to discuss one-time loan restructuring. Finance minister asked lenders to have board approved restructuring policy for their stressed customers by September 10. Nirmala Sitharaman also asked banks and NBFCs to commence the process of assessing and if needed, restructuring loans of eligible customers by September 15.<\/p>\n<div class=\"common-bottom-text\">\n<p>Get live <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/\" target=\"_blank\" rel=\"noopener noreferrer\">Stock Prices<\/a> from <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/s-p-bse-sensex-stock-price\/\" target=\"_blank\" rel=\"noopener noreferrer\">BSE<\/a>, <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/nifty-50-stock-price\/\" target=\"_blank\" rel=\"noopener noreferrer\">NSE<\/a>, <a href=\"https:\/\/www.financialexpress.com\/investing-abroad\/\" target=\"_blank\" rel=\"noopener noreferrer\">US Market<\/a> and latest NAV, portfolio of <a href=\"https:\/\/www.financialexpress.com\/mutual-funds-india\/\" target=\"_blank\" rel=\"noopener noreferrer\">Mutual Funds<\/a>, calculate your tax by <a href=\"https:\/\/www.financialexpress.com\/income-tax-calculator\/\" target=\"_blank\" rel=\"noopener noreferrer\">Income Tax Calculator<\/a>, know market\u2019s <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/nse-top-gainers\/\" target=\"_blank\" rel=\"noopener noreferrer\">Top Gainers<\/a>, <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/nse-top-losers\/\" target=\"_blank\" rel=\"noopener noreferrer\">Top Losers<\/a> &amp; <a href=\"https:\/\/www.financialexpress.com\/mutual-funds-india\/equity-funds\/\" target=\"_blank\" rel=\"noopener noreferrer\">Best Equity Funds<\/a>. Like us on <a href=\"https:\/\/www.facebook.com\/thefinancialexpress\" target=\"_blank\" rel=\"noopener noreferrer\">Facebook<\/a> and follow us on <a href=\"https:\/\/twitter.com\/FinancialXpress\" target=\"_blank\" rel=\"noopener noreferrer\">Twitter<\/a>.<\/p>\n<p class=\"telegram-text\"><img loading=\"lazy\" decoding=\"async\" class=\"telegrma_img\" src=\"https:\/\/images.financialexpress.com\/2020\/04\/telegram.png\" alt=\"\" width=\"24\" height=\"24\" style=\"margin: 0px 5px 4px 0px; float: left;\"\/>Financial Express is now on Telegram. <a href=\"https:\/\/t.me\/TheFinancialExpressOnline\" target=\"_blank\" rel=\"noopener noreferrer\">Click here to join our channel<\/a> and stay updated with the latest Biz news and updates.<\/p>\n<\/div>\n<\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><a href=\\\"https:\/\/www.financialexpress.com\/industry\/banking-finance\/debt-restructure-fidc-seeks-waiver-on-10-additional-provisioning\/2077489\/\\\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The letter mentioned that NBFCs follow Indian accounting standard (IND AS) norms on provisioning for credit losses. By Ankur Mishra Finance Industry Development Council (FIDC), the umbrella body for non-banking financial companies (NBFCs), has written to finance minister Nirmala Sitharaman, seeking a waiver on the additional 10% provisioning requirement for [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":20609,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[36],"tags":[],"class_list":["post-20608","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking-business"],"jetpack_featured_media_url":"https:\/\/bengalnewstimes.com\/wp-content\/uploads\/2020\/09\/Debt-restructure.jpg","_links":{"self":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/posts\/20608","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=20608"}],"version-history":[{"count":0,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/posts\/20608\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/media\/20609"}],"wp:attachment":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=20608"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=20608"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=20608"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}