Kotak Mahindra, HDFC, and RBL Banks Make Provisions on AIF Investments Following RBI Guidelines

20 Jan 2024 , 03:38 PM

Kotak Mahindra Bank allocates Rs 143 crore as a post-tax provision on its alternate investment fund (AIF) investments in adherence to the RBI’s circular dated December 19, 2023.

The RBI directive, issued on December 19, prohibits regulated entities, including banks, non-bank lenders, and home financiers, from investing in AIFs connected to companies borrowing from the lenders.

HDFC Bank and RBL Bank also make provisions in line with RBI’s guidelines, with HDFC Bank’s CFO, Srinivasan Vaidyanathan, mentioning a 100 % contingent provision on their AIF book of Rs 1,220 crore.RBL Bank discloses a Rs 115 crore contingent provision on its AIF investments, emphasizing its focus on venture debt funds for digital businesses in compliance with the recent RBI circular.

All three banks take prudent measures to comply with the regulatory framework and make necessary provisions within the stipulated timelines.

For feedback and suggestions, write to us at [e-mail]