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exposure norms
What is meant by 'exposure' in the context of bank lending?
Exposure refers to the total credit risk a bank undertakes with a single borrower or group of borrowers, including funded and non-funded credit facilities such as loans, guarantees, and letters of credit.
What is the prudential exposure limit for a bank's exposure to a single borrower as a percentage of capital funds?
20% of capital funds for a single borrower
What is the single borrower exposure limit prescribed by RBI for Indian banks?
RBI prescribes a single borrower exposure limit of 15% of the bank's capital funds (Tier I + Tier II capital), which may be extended to 20% if the additional exposure is for infrastructure financing.
What is the enhanced single borrower exposure limit allowed with board approval for infrastructure projects?
25% of capital funds for infrastructure borrowers
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