Dedicated to the Young and Energetic Force of Bankers
Sign In/Sign Out

WELCOME

   ABM-Case Studies

   ABM-Recollected

   ABM-Last Minute

   BFM-Case Studies

   BFM-Recollected

   BFM-Last Minute

   Important Circulars

   Master Circulars

   Bank DA Rates

   Bank Holidays

   Life Ins Companies

   List of PSBs

   List of Private Banks

   List of Foreign Banks

 

CAIIB-ABM-MOD-D-Asset Classification and Provisioning Norms

Asset Classification and Provisioning Norms

  • Banks should classify an account as NPA only if the interest charged during any quarter is not serviced fully within 90 days from the end of the quarter
  • An account should be treated as 'out of order' if the outstanding balance remains continuously in excess of the sanctioned limit/drawing power In cases where the outstanding balance in the principal operating account is less than the sanctioned limit/drawing power, but there are no credits continuously for 90 days as on the date of Balance Sheet or credits are not enough to cover the interest debited during the same period, these accounts should be treated as 'out of order'.
  • Any amount due to the bank under any credit facility is 'overdue' if it is not paid on the due date fixed by the bank.
  • Interest on advances against term deposits, NSCs, IVPs, KVPs and life policies may be taken to income account on the due date, provided adequate margin is available in the accounts.
  • A substandard asset would be one, which has remained NPA for a period less than or equal to 12 months. a substandard asset would be one, which has remained NPA for a period less than or equal to 12 months.
  • If arrears of interest and principal are paid by the borrower in the case of loan accounts classified as NPAs, the account should no longer be treated as nonperforming and may be classified as 'standard' accounts.

  • Advances against Term Deposits, NSCs, KVP/IVP, etc, need not be treated as NPAs. Advances against gold ornaments, Government securities and all other securities are not covered by this exemption.


……………………………………………………………………………………………………………………………………………


WEBSITES

  Telegram FREE Study Material

  Facebook FREE Study Material

  YouTube Channel For Lectures

  Bank Promotion exams

  Only for Bankers

  RBI

  IIBF

  IRDA

  SEBI

  BCSBI

  CIBIL

  Banking and Insurance

  Ministry of Finance

  Excise & Customs

  Income Tax Department

  NSE

  BSE


       

Copyright @ 2019 : www.jaiibcaiibmocktest.com