Calculation of provision in banking companies

As per my knowledge you just cannot follow the latest rates according to the latest budget comes out, its better to use the  rates that are given in ur specified books.

According to me, Provisions of bad debt for Advances in banking accounts:-

Standard asset- 0.40%

Sub-Standard asset-10%

Doubtfull asset (0-1)-20%

Doubtfull asset(1-3)-30%

Doubtfull asset(more than 3 years)-100%

Loss asset-100%

Doubtfull asset(all types) if without security-100%

But as per revision test paper and practice manual  issued by ICAI, Enhancement of Rates of Provisioning for Non-Performing Assets and Restructured Advances is applicable for may 2012 examination. It create confusion for me.

Yes..as i said you have to follow your ICAI study materials..i hope the recent changes are as follows

standard assets - 0.25% - 1.00% (depending on the kind of advance)
sub standard assets - 15%
doubtful assets - upto 1 year 25%, one to three years - 40%, more than three years - 100%
loss assets - 100%

Above post is also correct.