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Please tell me the provision required in asset classification.(Banking)
The assets are classified in to
Standard
Sub standard
Doubtful and
Loss assest
Inthe case of standard assets required provision is 0.40%
Sub standard assets 10%
Doubtful (unsecured portion) 100%
Doubtful (secured portion)
up to1 year 20%
2 to 3 year 30%
more than 3 year 100%
Thank u Sir 4 ur valuable answer.
Its ok dear
Mr. Dhirendra Can u elaborate it a bit more.
Provision for what ??
Please make me clear .
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