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These forbearances included deferment of minimum provision on accounts referred under the Insolvency and Bankruptcy Code (IBC), 2016 by a quarter, and amortisation over four quarters of mark to market losses on bond portfolios suffered in the second half of FY18. Both these forbearances, if opted for by PSBs, are expected to reduce their reported losses, and consequently improve their capital positions by Rs 35,000 40,000 crore in Q4 of FY18. However, this relief is likely to be temporary, as these forbearances only defer reporting of losses by a few quarters..

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