Is loan given by Banks for more than 3Yrs whether secured or unsecured to any asset should be provided as 100% provision ?
What if loan is for 1yrs / 2 yrs ?
Is Banking Regulation Act , has made it mandatory to make provision in book of A/C's?
Menu
Non-perfoming Asset .
Replies (2)
Every loan if is non performing has to be provided with a provision. The extent of it depends on the below link's.
Check this link out
https://ezeetax.wordpress.com/2010/04/01/npa-chart/
IF AN ASSET IS NON PERFORMING ASSET THEN IN CASE OF UNSECURED LOAN THE PROVISION IS TO CREATED @ 100%
IN CASE OF SECURED LOAN
STANDARD = .40%(for 1 year once declared as a non performing asset)
SUB STANDARD = 10%
DOUBTFUL ASSET
UPTO 1 YEAR =20%
FROM 1 TO 3 YEARS =30%
MORE THEN 3 YEARS = 100%
Recent Topics :
- Demand Raised for Cess Amount Despite Section 89 R
- WRONG BILL NO FILED IN GST R1
- Addtional trade name for my another firm
- Commission / Agency Business without books: REAL E
- Difference between AIS and 26AS data.
- Applicability of FCRA to Article Processing Fees (
- GST Return
- Practical queries on buy back of shares
- Any faculty recommendations for latest batch recor
- FAI & FAST-DS 2026 query
Related Topics :
CAclubindia
