Banks need to closely monitor asset quality, prepare for higher provisioning: RBI

The waiver of compound interest on all loan accounts which opted for moratorium during March-August 2020 may put stress on banks' financial health. The apex bank, however, expressed confidence that banks are better positioned than before in managing stress in their balance sheets in view of higher capital buffers, improvement in recoveries and a return to profitability.

from Banking/Finance-Industry-Economic Times https://ift.tt/3ux3RHi