Banks allowed to use one-third of buffer provisioning for NPAs

The Reserve Bank of India (RBI) on Friday allowed lenders to use one-third of their provisioning buffer for non-performing assets (NPAs) or bad loans. "...it has been decided, as a countercyclical measure, that banks may utilise up to 33 per cent of countercyclical provisioning buffer/floating provisions held by them as on March 31, 2013, for making specific provisions for non-performing assets, as per the policy approved by the...