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Asset classification

Others 894 views 5 replies

Please tell me the provision required in asset classification.(Banking)

Replies (5)

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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