Provision Coverage Ratio Current Affairs

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What is NPA ? What are the Loan classification norms ? What is Provisioning Coverage Ratio (PCR) ?

NPA = Non-Performing Asset Loans and advances given by the banks to its customers is are an Asset to the bank. Just for the sake of simplicity, we can understand that a loan (an asset for the bank) turns as NPA when the EMI, principal or interest component for the loan is not paid within… Read More »


PSBs’ profits would have been wiped out were they asked to maintain 70% PCR

Thanks to RBI, which had withdrawn the requirement for 70% loan loss cover from September 2011. Else, Public sector banks, which have decreased their PCR (Provision Coverage Ratio) in the last one year, would have seen their quarterly profits wiped out, were they asked to maintain PCR of 70%. It is interesting to note that… Read More »