Risk weight on NPAs

Risk Weight on NPAs

a) Risk weight on NPAs net of specific provision will be calculated as under:
When provision is less than 20% of NPA o/s ---- 150%
When provision is at least 20% of NPA o/s ---- 100%
When provision is at least 50% of NPA o/s ---- 50%
Category Provision Rate Criteria Risk Weight
Substandard 15% Provision is less 150%
(Secured) than 20%
Substandard 25% Provision is at-least 100%
(Unsecured) 20%
Doubtful (DI) 25% Provision is at-least 100%
(Secured) 20%
Doubtful (DI) 100% Provision is at-least 50%
(Un-Secured) 50%
Doubtful (D2) 40% Provision is at-least 100%
(Secured) 20%
Doubtful (D3) 100% Provision is at-least 50%
(Secured) 50%
Doubtful (D2) 100% Provision is at-least 50%
(Un-Secured) 50%