Impact of new policy on loan loss provisions

A false rumours on new loan loss provisions just created hurdles for banks and investors, profits of banking sector may fall up to 20 to 30 %.
How it will be possible. Lets analyze.
According to previous provision if the due passes more than 3 month good loan must have transferred to substandard loan by increasing provision from 1 % to 25 %. But new provision has given  authority that 25 % loan provision can be transferred to 5%. It means overall 20 % provision is deducted and can be returned back to profit; this finally increases the profit of financial institutions. So investor need not have to worry on this rumour. Hence overall profit of financial institutions will increase. This is one of the excellent decision of central bank.