Home > Experts > Others > Rate of the provision of NPA


Please Wait ..

Sign-in to your account


Username:
Password:

Remember Me

Forgot your password?

Sign-up now



Join CAclubindia.com and Share your Knowledge. Registered members get a chance to interact at Forum, Ask Query, Comment etc.


Rate of the provision of NPA (Others)

Report Abuse
This query is : Resolved


( Author )
16 September 2008

what is the rate of the provision of NPA,Sub-standard assets,standard assets ??


Taxguy

( Expert )
16 September 2008

PROVISIONS ON ASSETS:
1) STANDARD ASSETS:
General Provision as follows:
A) On direct advances to Agriculture and SME - 0.25%
B) Residential Housing loans beyond Rs.20 lakhs – 1%
C) Specific sector advance like personal loans, Credit Card dues, Loan on Capital Market instrument commercial Real estate Loans & NBFC. - 2%
D) All Other advances - 0.40%
Provision on Standard Assets should not be netted from Gross Advance but shown separately as provision and should not be taken for arriving Net NPA.
2) SUB STANDARD ASSETS:
General provision 10% on Out Standing amount irrespective of security coverage. Unsecured provision additional 10% , if tangible securities are less than 10% of loan ( ab-Initio.) at the time of advance.


Vincent Jose

( Author )
17 September 2008

thank 4 helping me


Previous

Next

You need to be the querist or approved CAclub expert to take part in this query .


Click here to login ( Members Login ) now


Similar Resolved Queries :











submit










Quick Links





back to the top