Question
_________ is the ratio of provisioning to gross
non-performing assets and indicates the extent of funds a bank has kept aside to cover loan losses.Solution
Provisioning Coverage Ratio (PCR) is essentially the ratio of provisioning to gross non-performing assets and indicates the extent of funds a bank has kept aside to cover loan losses. It was decided that banks should augment their provisioning cushions consisting of specific provisions against NPAs as well as floating provisions, and ensure that their total provisioning coverage ratio, including floating provisions, is not less than 70 per cent.
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d...
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