Asset Classification
|
Period as NPA
|
Current provisioning (%)
|
Revised accelerated provisioning (%)
|
Sub- standard
(secured) |
Up to 6 months
|
15
|
No change
|
6 months to 1 year
|
15
|
25
| |
Sub-standard
(unsecured ab-initio) |
Up to 6 months
|
25 (other than infrastructure loans)
|
25
|
20 (infrastructure loans)
| |||
6 months to 1 year
|
25 (other than infrastructure loans)
|
40
| |
20 (infrastructure loans)
| |||
Doubtful I
|
2nd year
|
25 (secured portion)
|
40 (secured portion)
|
100 (unsecured portion)
|
100 (unsecured portion)
| ||
Doubtful II
|
3rd & 4th year
|
40 (secured portion)
|
100 for both secured and unsecured portions
|
100 (unsecured portion)
| |||
Doubtful III
|
5th year onwards
|
100
|
100
|
SMA Sub-categories
|
Basis for classification
|
SMA-0
|
Principal or interest payment not overdue for more than 30 days but account showing signs of incipient stress (Please see Appendix to Part C)
|
SMA-1
|
Principal or interest payment overdue between 31-60 days
|
SMA-2
|
Principal or interest payment overdue between 61-90 days
|
Latest Provisioning Vs Accelerated Provisioning
ReplyDeletePlease don't get confused with Accelerated Provisioning to the latest provisioning norms
What is Accelerated Provisioning?
Refer : RBI/2015-16/101, DBR.No.BP.BC.2/21.04.048/2015-16 dated 01.07.2015 at "https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=9908"
As a measure to ensure adherence to the proposals made in RBI guidelines as also to impose disincentives on borrowers for not maintaining credit discipline, accelerated provisioning norms are being introduced.
In cases where banks fail to report SMA status of the accounts to CRILC or resort to methods with the intent to conceal the actual status of the accounts or evergreen the account, banks will be subjected to accelerated provisioning for these accounts and/or other supervisory actions as deemed appropriate by RBI.
In all other cases, the existing provisioning norms will only apply.
Sub-Standard (Secured) - 15%
Sub-Standard (Unsecured) - 25% (other than infrastructure loans)
Sub-Standard (Unsecured) - 20% (infrastructure loans)
Doubtful-I (Secured) - 25%
Doubtful-I (Unsecured) - 100%
Doubtful-II (Secured) - 40%
Doubtful-II (Unsecured) - 100%
Doubtful-III (Secured) - 100%
Doubtful-III (Unsecured) - 100%
Loss - 100%
Accelerated Provisioning (only applicable if banks fail to report SMA status of the accounts to CRILC or resort to methods with the intent to conceal the actual status of the accounts or evergreen the account)
Sub-Standard (Secured-upto 6 months) - 15%
Sub-Standard (Secured-6 months to 1 year) - 25%
Sub-Standard (Unsecured-upto 6 months) - 25%
Sub-Standard (Unsecured-6 months to 1 year) - 40%
Doubtful-I (Secured) - 40%
Doubtful-I (Unsecured) - 100%
Doubtful-II (Secured) - 100%
Doubtful-II (Unsecured) - 100%
Doubtful-III (Secured) - 100%
Doubtful-III (Unsecured) - 100%
Loss - 100%
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