India cenbank should review plan to raise provisions against infra loans, lobby group says

MUMBAI, June 11 (Reuters) – The lobby group for Indian non-banking lenders on Tuesday asked for a review of a recent proposal from the central bank calling for an increase in the provisions that lenders have to set aside against infrastructure project loans.

Last month, the Reserve Bank of India (RBI) proposed that banks and non-banking financial companies set aside a provision of 5% of the total loan amount of infrastructure projects at the construction phase, a sharp jump from the 0.4% required currently.