Rise in NPA Provisioning

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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

 

  • Secured Exposures
  • Unsecured Exposures
  • Unsecured Exposures in respect of Infrastructure loan accounts where certain safeguards such as escrow accounts are available.
 

 

10
20
15

 

 

15
25
20

Doubtful Advances – Unsecured Portion 100 100
Doubtful Advances – Secured Portion

 

  • For Doubtful upto 1 year
  • For Doubtful > 1 year and upto 3 years
  • For Doubtful > 3 years
 

 

20
30
100

 

 

25
40
100

Loss Advances 100 100
Restructured accounts classified as standard advances in the first two years from the date of restructuring ; and

 

  • in cases of moratorium on payment of interest/principal after restructuring – period covering moratorium and two years thereafter.
 

 

0.25 to 1.00 (depending upon the  category of advance)

 

 

2

Restructured accounts earlier classified as NPA and later upgraded to standard category

 

  • in the first year from the date of upgradation
 

 

0.25 to 1.00 (depending upon the  category of advance)

 

 

2


Replies (1)

The notification is dated 18.05.11

hence i dont think it is applicable. please reply if anyone knows whether they are applicable for Nov'11 exam or not.

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