diff --git a/mifosng-provider/src/main/resources/sql/migrations/core_db/V197__updated_loan_running_balance_of_transactions.sql b/mifosng-provider/src/main/resources/sql/migrations/core_db/V197__updated_loan_running_balance_of_transactions.sql
index b7b94177d..b3a693b91 100755
--- a/mifosng-provider/src/main/resources/sql/migrations/core_db/V197__updated_loan_running_balance_of_transactions.sql
+++ b/mifosng-provider/src/main/resources/sql/migrations/core_db/V197__updated_loan_running_balance_of_transactions.sql
@@ -1,4 +1,4 @@
-CREATE TABLE `m_loan_transaction_temp` (
+/*CREATE TABLE `m_loan_transaction_temp` (
 	`id` BIGINT(20) NOT NULL,
 	`loan_id` BIGINT(20) NOT NULL,
 	`amount` DECIMAL(19,6) NOT NULL DEFAULT '0',
@@ -10,4 +10,73 @@ INSERT INTO m_loan_transaction_temp(`id`,`loan_id`,`transaction_date`,`amount`)
 
 UPDATE m_loan_transaction lt SET lt.outstanding_loan_balance_derived = (select sum(ltt.amount) from m_loan_transaction_temp ltt where ((ltt.transaction_date = lt.transaction_date and ltt.id  <= lt.id) or ltt.transaction_date < lt.transaction_date) and ltt.loan_id = lt.loan_id) where lt.transaction_type_enum != 10 and lt.is_reversed = 0;
 
-DROP TABLE `m_loan_transaction_temp`;
+DROP TABLE `m_loan_transaction_temp`;*/
+
+drop table if exists m_loan_transaction_temp;
+ 
+/**Temp table with primary key and indices**/
+CREATE TABLE `m_loan_transaction_temp` (
+`id` BIGINT(20) NOT NULL,
+`loan_id` BIGINT(20) NOT NULL,
+`amount` DECIMAL(19,6) NOT NULL DEFAULT '0.000000',
+`transaction_date` DATE NOT NULL,
+PRIMARY KEY (`id`),
+INDEX `loan_id` (`loan_id`),
+INDEX `transaction_date` (`transaction_date`)
+)
+COLLATE='utf8_general_ci'
+ENGINE=InnoDB;
+ 
+/**Copy data to temp table, skip accrual transaction, greatly reduces table size**/
+INSERT INTO m_loan_transaction_temp(`id`,`loan_id`,`transaction_date`,`amount`)
+select lt.id, lt.loan_id,lt.transaction_date,if(lt.transaction_type_enum = 1 , IFNULL(lt.amount,0),IFNULL(-lt.principal_portion_derived,0)) from m_loan_transaction lt where lt.is_reversed=0 and lt.transaction_type_enum <> 10;
+ 
+ 
+/**Drop stored procedure**/
+drop procedure if exists update_running_balance;
+ 
+ 
+/**Update Balance for 500 records at a time using store procedure**/
+DELIMITER //
+CREATE PROCEDURE `update_running_balance` ()
+LANGUAGE SQL
+DETERMINISTIC
+SQL SECURITY DEFINER
+COMMENT 'Update Running Balances for Loans'
+BEGIN
+ 
+DECLARE max_transaction INT DEFAULT 0;
+DECLARE i INT DEFAULT 0;
+DECLARE n INT DEFAULT 0;
+DECLARE page_size INT DEFAULT 500;
+ 
+select max(id) into max_transaction from m_loan_transaction;
+ 
+ 
+SET i = 0;
+ 
+theLoop:LOOP
+SET n = i + page_size;
+ 
+IF i < max_transaction THEN
+ 
+START TRANSACTION;
+ 
+UPDATE m_loan_transaction lt SET lt.outstanding_loan_balance_derived = (select sum(ltt.amount) from m_loan_transaction_temp ltt where ((ltt.transaction_date = lt.transaction_date and ltt.id <= lt.id) or ltt.transaction_date < lt.transaction_date) and ltt.loan_id = lt.loan_id) where lt.transaction_type_enum != 10 and lt.is_reversed = 0 and lt.id BETWEEN i AND n;
+SET i = i + page_size;
+COMMIT;
+ 
+ITERATE theLoop;
+ 
+END IF;
+LEAVE theLoop;
+END LOOP theLoop;
+ 
+END//
+ 
+/**Call stored procedure**/
+call update_running_balance();
+ 
+/**Drop stored procedure**/
+drop procedure update_running_balance; 
+drop table m_loan_transaction_temp;
\ No newline at end of file