What is Provisioning?
Provisioning (also called provisions) — Money a bank sets aside to cover expected loan losses, which reduces reported profit but strengthens the balance sheet.
In simple terms
Higher provisioning against bad loans cuts a bank’s net profit.
Why Provisioning matters when you invest
Understanding provisioning helps you make better-informed decisions when you invest and trade on ROAR by DP TradeKING. Open a free account to put it into practice — ₹0 delivery brokerage and zero-commission direct mutual funds.
Provisioning — frequently asked questions
What is Provisioning?
Money a bank sets aside to cover expected loan losses, which reduces reported profit but strengthens the balance sheet.
What does Provisioning mean in the stock market?
Money a bank sets aside to cover expected loan losses, which reduces reported profit but strengthens the balance sheet. Higher provisioning against bad loans cuts a bank’s net profit.
Can you give an example of Provisioning?
Higher provisioning against bad loans cuts a bank’s net profit.
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