Regulatory Alerts2010-10-27
Added · Updated
BRPD Circular No. 32: General provision on loan against shares etc
Banks must maintain a 2% general provision on unclassified funded loans disbursed to stock dealers, subsidiary companies established for share brokerage and merchant banking, and other entities dealing in such business, increasing the previous requirement of 1%. This change applies to loans against shares and debentures due to capital market investment risks. The existing CL-1 reporting format has been amended to reflect this adjustment, and banks are required to submit data using the revised format with immediate effect.