BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
The Reserve Bank of India has issued clarification with respect to queries raised on the implementation of revised asset classification and provisioning norms.
Firstly, it clearly states that circular issued does not, in any way, interfere with the extant guidelines on implementation of India-Accounting Standard by non banking financial companies.
It means the provisioning need not necessarily hit profit and loss and stage-III can be disclosed distinctly from gross non-performing assets. Also, RBI has given time to NBFCs till September 30, 2022 to implement the provision on upgradation of non-performing asset to standard assets (only after entire arrears of interest and principal are paid).
Positively, additional provisioning that was expected in Q4 FY22 for some entities (namely Mahindra and Mahindra Financial Services Ltd., LIC Housing Finance Company Ltd.) will not be required now with the clarification being issued by the RBI.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
As a Subscriber you get
Stories
RECOMMENDED FOR YOU
POPULAR