Thursday, 6 December 2018

VERY IMPORTANT FOR CAIIB BFM Provisioning calculation table

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

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4 comments:

  1. K Murugan - JAIIB CAIIB STUDY MATERIAL8 December 2018 at 21:32

    Latest Provisioning Vs Accelerated Provisioning

    Please 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%

    ReplyDelete
  2. Unknown9 December 2018 at 16:10

    TT buying or selling and bill buying and selling diffrediff

    ReplyDelete
  3. Unknown9 December 2018 at 16:11

    Forex rate

    ReplyDelete
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    Aspirants can take free Jaiib and Caiib mock test in Mock JAIIB CAIIB

    ReplyDelete