Wide the following notification from RBI it has risen the Percentage of provision to be provided for NPA of Banks...
RBI 2010-11/529
DBOD.No.BP.BC. 94/21.04.048/2011-12
The comparitive percentages are given below and also i think this will be applicable for pcc/ipcc exams in Nov '11 though no such notification have come from ICAI officially....but still u guys keep an eye on it.....
Rates of Provisioning for Non-Performing Assets and Restructured Advances
| Category of Advances | Existing Rate (%) | Revised Rate (%) |
|
Sub- standard Advances
|
10 |
15 |
| Doubtful Advances – Unsecured Portion | 100 | 100 |
|
Doubtful Advances – Secured Portion
|
20 |
25 |
| Loss Advances | 100 | 100 |
|
Restructured accounts classified as standard advances in the first two years from the date of restructuring ; and
|
0.25 to 1.00 (depending upon the category of advance) |
2 |
|
Restructured accounts earlier classified as NPA and later upgraded to standard category
|
0.25 to 1.00 (depending upon the category of advance) |
2 |
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