June 7, 2017
All Commercial Banks(Excluding Regional Rural Banks and Local Area Banks)
Individual Housing Loans: Rationalisation of Risk-Weights and Loan to Value (LTV) Ratios
Please refer to the Second Bi-monthly Monetary Policy Statement for 2017-18, announced today.
2. As a countercyclical measure, the LTV ratios, risk weights and standard asset provisioning rate for individual housing loans sanctioned on or after the date of this circular shall be as under:
3. The LTV ratios, Risk Weights and Standard Asset Provision set out in the circular DBR.BP.BC.No.44/08.12.015/2015-16 dated October 8, 2015, on the captioned subject, shall continue to apply to loans sanctioned up to June 6, 2017.
4. All other instructions referred to in the above mentioned circular remain unchanged.
(S.S. Barik)Chief General Manager in-Charge