They were also allowed further time of one more year to comply with the increased Capital to Risk-Weighted Asset Ratio (CRAR) stipulation of 15 per cent as against the existing requirement of 12 per cent. Provisioning coverage ratio 43.
Recognising the impact that restructuring and slower growth could have on the credit quality of banks and taking into account the need to build up provisions when banks’ earnings are good, banks were advised in December 2009 that their total provision coverage ratio, including floating provisions, should not be below 70 per cent by September 2010. Strengthening of securitisation guidelines 44.