RBI EASES PROVISIONING RULES FOR INFRASTRUCTURE LOANS

Following an appeal by lenders, the Reserve Bank of India (RBI) will now require lenders to set aside 1% of the value of loans for under-construction infrastructure projects to cover potential losses, as against the earlier proposal of provisioning up to 5%. This new requirement will be effective from 1st Oct. The RBI, under governor Sanjay Malhotra, has taken several steps to ease credit requirements to try to stimulate growth. Under the new rules, lenders will also have to set aside 1.25% of the value of loans for under-construction commercial real estate projects. Some of the infrastructure companies that will benefit out of this new policy are

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