Infra lender IDFC on Monday said it may not be required to make any incremental provisioning to ring-fence the newly launched bank, saying the Rs2,500-crore one-time provision made in the second quarter will take care of any risk going ahead.
“The asset book that is been transferred from IDFC to IDFC Bank, I don't envision any incremental provision. That's the reason we did one-off provision as well to make sure that from balance sheet perspective all known risks are provided,” IDFC ltd MD and CEO Vikram limaye told reporters.
He, however, said that the bank will have to make standard provisioning that are required by banking regulations for any incremental asset. In the second quarter, IDFC had transferred Rs2,500 crore from its non-distributable reserves as loan provisions in the bank.
“In this (Q2) quarter financial statement that provisions have actually been made, which means we have transferred that amount to provisions for loans,” he said.