Caiib Latest Provisioning Vs Accelerated Provisioning

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%