According to our November projection, inflation will continue to move at low levels in the coming period, as confirmed by the inflation expectations of financial and corporate sectors for one and two years ahead.
Thus, this will ensure that every year the charge to profit and loss account on account of specific provisions and dynamic provisions is maintained at a level of alpha times outstanding loans i.e., expected losses. As is observed from above, dynamic provisions are created only when the specific provisions are lesser than the expected losses.