14 February 2010
In case of advances guaranteed by ECGC or DICGC, provision is required to be made only for the balance in excess of the amount guaranteed by these corporations after deducting the realizable value of the security if the banks hold a security in respect of an advance guaranteed by ECGC/DICGC. (A) Amount outstanding (B) Less:- realizable value of security (C) Unsecured Portion (A-b) (D) Provision required for unsecured portion @100% (E) Provision required for secured portion @ 20/30/50 % (if doubtful as per NPA norms) (F) Total (D+E) (G) Less:- ECGC/DICGC cover (H) Total provision required (E-G)
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