The provisioning requirements for all types of standard assets was reduced to a uniform level of 0.40 per cent except in the case of direct advances to agricultural and SME sectors, which continued to attract a provisioning of 0.25 per cent, as hitherto.
As the economy stabilised, it was found that credit to CRE again started showing signs of rapid growth while there was evidence of lack of demand in the sector; the provisioning requirement for CRE was increased to one per cent in October 2009 to deal with the likely rise in NPAs.