A powerful presentation on non performing assets which very much influencial when presented before others. Being a law student, I myself created the presentation and presented before the elite authorities which impressed them to a larger extent.
,
modes of charging
,
modes of charging security
,
different modes of creating charge
,
essentials of pledge
,
documents required for pledge
,
liquid asset
,
different forms of liquid assets
,
supplies of liquid assets
,
demand of assets
Today, the banking industry in our country is stronger and capable of withstanding the pressures of competition. It withstood Global Financial Crisis (2008). In the era of Globalization Banking Sector in India is rapidly changing since 1990s due to technological innovation, financial liberalization with entry of new private and foreign banks, and regulatory changes in the corporate sector. Indian banking industry is gradually moving towards adopting the best practices in accounting, internationally accepted prudential norms, with higher disclosures and transparency, corporate governance and risk management, interest rates have been deregulated, while the rigour of directed lending is being progressively reduced. In our country, currently we are having a fairly well developed banking system with different classes of banks – public sector banks, foreign banks, private sector banks – both old and new generation, regional rural banks and co-operative banks with the Reserve Bank of India as the leader of the system. In the banking field, there has been an unprecedented growth and diversification of banking industry and our banks are now utilizing the latest technologies like internet and mobile devices to carry out transactions and communicate with the masses.
A powerful presentation on non performing assets which very much influencial when presented before others. Being a law student, I myself created the presentation and presented before the elite authorities which impressed them to a larger extent.
,
modes of charging
,
modes of charging security
,
different modes of creating charge
,
essentials of pledge
,
documents required for pledge
,
liquid asset
,
different forms of liquid assets
,
supplies of liquid assets
,
demand of assets
Today, the banking industry in our country is stronger and capable of withstanding the pressures of competition. It withstood Global Financial Crisis (2008). In the era of Globalization Banking Sector in India is rapidly changing since 1990s due to technological innovation, financial liberalization with entry of new private and foreign banks, and regulatory changes in the corporate sector. Indian banking industry is gradually moving towards adopting the best practices in accounting, internationally accepted prudential norms, with higher disclosures and transparency, corporate governance and risk management, interest rates have been deregulated, while the rigour of directed lending is being progressively reduced. In our country, currently we are having a fairly well developed banking system with different classes of banks – public sector banks, foreign banks, private sector banks – both old and new generation, regional rural banks and co-operative banks with the Reserve Bank of India as the leader of the system. In the banking field, there has been an unprecedented growth and diversification of banking industry and our banks are now utilizing the latest technologies like internet and mobile devices to carry out transactions and communicate with the masses.
NPA - Non Performing Assets by Meka SantoshSantosh Meka
NPA which is gobal problem for the banks with the borrower who they not pay money back to the banks with the given period of time.The silde have been describing toward INDIAN bank. More over it includes the impact, problem, solution and action taken by RBI and Govt of India to solve the issue of NPA.
an analysis about the Indian banking system and the analysis of two major banking sector reforms; Narasimham committee (1 and 2) on banking sector reforms
NPA - Non Performing Assets by Meka SantoshSantosh Meka
NPA which is gobal problem for the banks with the borrower who they not pay money back to the banks with the given period of time.The silde have been describing toward INDIAN bank. More over it includes the impact, problem, solution and action taken by RBI and Govt of India to solve the issue of NPA.
an analysis about the Indian banking system and the analysis of two major banking sector reforms; Narasimham committee (1 and 2) on banking sector reforms
NPAs and their management in banks in IndiaJyoti Sharma
NPAs are a growing concern in banks. This ppt deals with concept of NPAs, RBI's prudential guidelines regarding income recognition, asset classification and provisioning, tools for NPA management available with banks
Financial statements are written records that convey the business activities and the financial performance of a company.
Financial statements are often audited by government agencies, accountants, firms, etc. to ensure accuracy and for tax, financing, or investing purposes.
CDD information comprises the facts about a customer that should enable a bank to assess the extent to which the customer exposes it to a range of risks.
The Consumer Protection Act, 2019 has been enacted for the purpose of providing timely and effective administration and settlement of consumer disputes and related matters.
RBI issued updated guidelines on ‘Co-Lending Model’ in November 05, 2020
“co-origination of loans” by banks and NBFCs for lending to the priority sector. “The arrangement entailed joint contribution of credit at the facility level by both lenders as also sharing of risks and rewards” the RBI said
Public Provident Fund or PPF Account benefits are discussed in Hindi as per updated RBI Guidelines 2019. How to open a PPF account online or in Post Office, 10 years Interest Rate Chart, PPF Maturity Chart and other PPF rules regarding withdrawal, eligibility, maturity period etc. are discussed in detail. PPF account can be opened in a Post Office or an Authorized Bank like Bank of India, SBI, PNB, ICICI Bank, HDFC Bank, Axis Bank etc.
DAY - NRLM (DAY - National Rural Livelihoods Mission) 'राष्ट्रीय ग्रामीण आजीव...Abinash Mandilwar
Complete scheme norms of DAY-NRLM (Deendayal Antyodaya Yojana – National Rural Livelihoods Mission) Schemes as per latest RBI guidelines. Important topic for JAIIB/CAIIB Exam and Banking awareness for bankers. Please like, share and comment on the video and subscribe the channel.
AML & KYC Guidelines in Bank | Anti-Money Laundering for JAIIB Exam | Bank Pr...Abinash Mandilwar
This video is based on RBI Master Circular on Prevention of Money Laundering Act, (PMLA) 2002 dated 25/02/2016 (Updated up as on 12 July 2018). This is very helpful for preparation of JAIIB Exam, Bank Promotion Exam & Bank PO Exam ( Banking Awareness). Please like, Share and Subscribe the channel. Your valuable comment for improvement is always welcome. For details You may purchase my JAIIB books online. https://www.amazon.in/s?k=abinash+man...
Follow me on twitter @amandilwar (Abinash Mandilwar)
This video is prepared on the basis of RBI Master Circular on Customer Service. The topic ‘Nomination facility in bank’ is very useful for Bank promotion JAIIB Exam and Bank PO Examination. Please like, share the video and subscribe the channel. Your valuable comments are always solicited. If you want video on any banking topics, please suggest in the comment box.
Priority Sector Lending in India | भारत में प्राथमिकता क्षेत्र ऋण | Priority ...Abinash Mandilwar
Priority Sector Lending is very important topics for banking knowledge. This video is based on latest RBI guidelines. It is useful for JAIIB/CAIIB Exam, Bank Po Exam and Bank promotion. Don't forget to like share and comment the video. If you want video on any banking topics, suggest me in the comment box. For details you may refer my book on JAIIB. https://www.flipkart.com/search?q=abi...
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
Lecture slide titled Fraud Risk Mitigation, Webinar Lecture Delivered at the Society for West African Internal Audit Practitioners (SWAIAP) on Wednesday, November 8, 2023.
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
Yes of course, you can easily start mining pi network coin today and sell to legit pi vendors in the United States.
Here the telegram contact of my personal vendor.
@Pi_vendor_247
#pi network #pi coins #legit #passive income
#US
The Evolution of Non-Banking Financial Companies (NBFCs) in India: Challenges...beulahfernandes8
Role in Financial System
NBFCs are critical in bridging the financial inclusion gap.
They provide specialized financial services that cater to segments often neglected by traditional banks.
Economic Impact
NBFCs contribute significantly to India's GDP.
They support sectors like micro, small, and medium enterprises (MSMEs), housing finance, and personal loans.
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
Abhay Bhutada Leads Poonawalla Fincorp To Record Low NPA And Unprecedented Gr...Vighnesh Shashtri
Under the leadership of Abhay Bhutada, Poonawalla Fincorp has achieved record-low Non-Performing Assets (NPA) and witnessed unprecedented growth. Bhutada's strategic vision and effective management have significantly enhanced the company's financial health, showcasing a robust performance in the financial sector. This achievement underscores the company's resilience and ability to thrive in a competitive market, setting a new benchmark for operational excellence in the industry.
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
The Role of Non-Banking Financial Companies (NBFCs)
IRAC NORMS (INCOME RECOGNITION & ASSET CLASSIFICATION AND PROVISIONING NORMS)
1. INCOME RECOGNITION &
ASSET CLASSIFICATION
AND
PROVISIONING NORMS
Presented By,
Abinash kr. Mandilwar
Chief Manager & Faculty Member,
STC, Bhopal
2. DEPOSIT MAKES
THE BANKING POSSIBLE
LENDING MAKES
THE BANKING PROFITABLE
NPA MAKES
THE BANKING PERISHABLE
NPA & BANKS
3. IRAC NORMS - INTRODUCTION
On recommendations of Narsimham
Committee on Financial Sector Reforms
(1991) PRUDENTIAL ACCOUNTING
NORMS have been Implemented in
Banks (1993).
PRUDENTIAL ACCOUNTING NORMS
Income Recognition
Asset Classification
Provisioning
4. DEFINITION OF NPA
An asset becomes non-performing when it ceases
to generate income to the Bank, in case of:-
1.Loan A/c (DL or TL)- Interest and/or installment of
principal remain OVERDUE (when not paid on the due date
fixed by the Bank) for a period of more than 90 Days.
2.Cash Credit or Overdraft A/c- The a/c remain OUT OF
ORDER* for a period of more than 90 days.
* (1) The Balance is continuously more than S/L or D/L or
(2) Where as on date of BS, there is no CREDIT in the a/c
continuously for 90 days or credit is less than interest
debited .
5. 1.The Limit is not reviewed within 180 days
from the due date of renewal.
2.Where stock statement has not been received
for 90 days or more in case of CC accounts.
3.Bills- The bill remains overdue for a period of
more than 90 days from due date of payment.
4.Direct Agricultural loans: Account becomes
NPA when;
a) For short duration crops: Interest/instalment
remaining overdue for 2 crop seasons &
b) For long duration crop: interest/installment
remaining overdue for 1 crop season.
DEFINITION OF NPA
6. EXCEPTIONS
Staff Loans– except in exceptionally
problematic cases like suit filed cases.
Advances against Bank’s own Term Deposits,
NSCs, KVPs, IVPs, LIC policies as long as
adequate margin is available.
Advance Repayment.
However, advances against gold
ornaments and other government
securities, shares are not covered
under this exemption.
7. 1. The credit facilities backed by the Guarantee of
Central Govt. though overdue, may be treated as NPA
only when the Govt. repudiates its guarantee when
revoked.
2. The credit facilities backed by the Guarantee of State
Govt. become NPA normally.
3. Classification will be done borrower-wise & not
facility-wise.
3. In case of loans to PACS/FSS classification will be done
facility-wise.
SALIENT POINTS
8. If any advance, including bills purchased and
discounted, becomes NPA, the entire interest accrued
and credited to income account in the past periods,
should be reversed if the same is not realised. This will
apply to State Government Guaranteed advances also.
In respect of NPAs, fees, commission and similar
income that have accrued should cease to accrue in
the current period and should be reversed with respect
to past periods, if uncollected.
REVERSAL OF INCOME
9. ACCOUNTING OF URI IN NPA A/CS
IN FINACLE
After marking an account as NPA (DC-NPADATE)
MAPD (Mark A/c as Past due) is to be run. System
Debits P&L a/c and Credits SUNCR038 if it is
CC/OD or Credits SUNCR032 if it is Loan a/c.
When a NPA a/c is upgraded to a “Standard
Asset”(DC-NPATOSTD) RPDA menu (Re-transfer
Past Due A/c) is executed. System will transfer URI
(Debits SUNCR038/SUNCR032) to P&L a/c.
To reconcile Balance in SUNCR032/SUNCR038
(URI) menu option PHINQ (in DC) is executed.
10. ASSET CLASSIFICATION
(Standard Overdue Accounts)
Before a loan account turns into a NPA, banks are required
to identify incipient stress in the account by creating three
sub-categories under the Special Mention Account (SMA)
category as given in the table below:
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
SMA-1 Principal or interest payment overdue between 31-60 days
SMA-2 Principal or interest payment overdue between 61-90 days
11. ASSET CLASSIFICATION
(NPA Accounts)
Sub-Standard- Account which has remained in NPA category for a
period of not more than 12 months. As to reliability these accounts
show credit weakness and there is distinct possibility that the Bank
will sustain some loss if the deficiencies are not corrected.
Doubtful- Account which remained in NPA category for more than 12
months. A loan classified as Doubtful has all the weaknesses
inherent to Sub-Standard assets with added characteristic that the
full recovery of the advance is highly improbable due to erosion of
security value or fraud or such other reasons.
LOSS- Account where LOSS has been identified by the bank or Internal
Auditors or External Auditors or by RBI Inspector but the amount
has not been written off. It is an asset which is considered
uncollectible although there may be some salvage or recovery
value.
12. NPA-ASSET CLASSIFICATION
To Determine the correct Asset Classification
of an NPA borrower TWO aspects are
Important:
1.“NPA Since” Date and
2.“Value of Security” (presently value is
entered in SRM instead of CCIS-A).
NET OUTSTANDING (NOS): Total Outstanding
less amount of Unrealised Interest (URI).
13. RVS DEFINITIONS
RVS: Value of Security (Realisable Value of
Security) for the purpose of reckoning NPA is
the sum total of the amounts entered in
HCLM/SRM each account of the borrower:
a) Value of Principal (Primary) Security,
b) Value of security, other than Primary
Security,
c) Value of Credit/Cash Margin,
d) Value of Guarantee (only of the Nature of
Guarantee Cover obtaining in the account
i.e., 3(ECGC), 4(DICGC) and 7(CGTMSE).
14.
15.
16.
17. ASSET CLASSIFICATION
1. Where NPA Since Date is up to 12
months from the Current Date :
a. Asset Code will be determined as 21 Sub- Standard
(Secured), except for as at ‘b’ below.
b. Asset Code will be determined as 22 Sub-Standard
(Unsecured), if the unsecured portion/RVS as stipulated
& ascertained is not more than10% abinitio (star clean
Personal loan, clean OD etc).
c. Asset Code will be determined as 31 Doubtful, if erosion
of RVS is more than 50% of the value accepted in the last
inspection.
d. Asset Code will be determined as 40 Loss, if erosion of
RVS is more than 90% of the value accepted in the last
inspection.
18. ASSET CLASSIFICATION
2. Where NPA Since Date is more than 12 months
and up to 24 months from the current date:
a. Asset code will be determined as 31
Doubtful if the RVS is not less than 10%
of the NOS.
b. Asset code will be determined as 40 Loss,
if the RVS is less than 10% of the NOS.
19. ASSET CLASSIFICATION
3. Where NPA since Date is more than 24 months
and up to 48 months from the current date:
a. Asset code will be determined as 32 Doubtful, if the
RVS is not less than 10% of the NOS.
b. Asset code will be determined as 40 Loss, if the
RVS is less than 10% of the NOS.
4. Where NPA since Date is more than 48 months
from the current date:
a. Asset code will be determined as 33 Doubtful.
b. Asset code will be determined as 40 Loss, if the
RVS is less than 10% of the NOS.
20. CATEGORIES, CODE AND PERIODS OF
NPA ASSETS
Category Assets
Code
Period in category
Sub-Standard
(Secured)
21 Up to 1 year from NPA
date
Sub-Standard
(Unsecured)
22 Up to 1 year from NPA
date
Doubtful I (D1) 31 Above 1 year to 2 years
from NPA date
Doubtful II (D2) 32 Above 2 years to 4 years
from NPA date
Doubtful III (D3) 33 More than 4 years from
NPA date
Loss 40 No time limit
21. NPA PROVISIONING
Asset
Code
NPA Category Provision Amount
(RBI Guide Lines)
21 Sub- Standard (Secured) 15% of Net Outstanding
22 Sub- Standard (Unsecured) 25% of Net Outstanding
Unsecured Exposures in respect of
Infrastructure loan accounts where certain
safeguards such as Escrow accounts are
available
20% of Net Outstanding
31 Doubtful I (Fully secured by RVS) 25% of Net Outstanding
31 Doubtful I (Partly secured by RVS) 25% of RVS plus 100% of the
unsecured Portion (NOS less RVS)
32 Doubtful II (Fully secured by RVS) 40% of net Outstanding
32 Doubtful II (Partly secured by RVS) 40% of RVS plus 100% of the
Unsecured Portion (NOS less RVS)
33 Doubtful III 100% of net Outstanding
40 Loss 100% of net Outstanding
22. PROVISIONING NORMS FOR STANDARD ASSETS
(i) The provisioning requirements for all types of standard
assets stands as below. Banks should make general
provision for standard assets at the following rates for the
funded outstanding on global loan portfolio basis:
a) Direct advances to agricultural and Small and Micro
Enterprises (SMEs) sectors at 0.25 percent;
b) Advances to Commercial Real Estate (CRE) Sector at
1.00 percent;
c) Advances to Commercial Real Estate – Residential
Housing Sector (CRE - RH) at 0.75 percent;
d) Housing loans extended at teaser rates and restructured
advances as per latest norms;
e) All other loans and advances not included in (a) (b) and
(c) above at 0.40 percent.
23. PROVISIONING NORMS FOR STANDARD ASSETS
(ii) The provisions on standard assets should not be reckoned for
arriving at net NPAs.
(iii) The provisions towards Standard Assets need not be netted from
gross advances but shown separately as 'Contingent Provisions against
Standard Assets' under 'Other Liabilities and Provisions Others' in
Schedule 5 of the balance sheet.
Advances covered by ECGC guarantee: In the case of advances
classified as doubtful and guaranteed by ECGC, provision should be
made only for the balance in excess of the amount guaranteed by the
Corporation.
Advance covered by guarantees of Credit Guarantee Fund Trust
for Micro and Small Enterprises (CGTMSE) or Credit Risk
Guarantee Fund Trust for Low Income Housing (CRGFTLIH): In
case the advance covered by CGTMSE or CRGFTLIH guarantee
becomes nonperforming, no provision need be made towards the
guaranteed portion.
24. COMPUTATION OF NPA LEVELS
Banks are advised to compute their Gross
Advances, Net Advances, Gross NPAs and Net
NPAs, as per the format given below.
1. Gross Advances = Standard Asset Plus Gross
NPA
2. Gross NPAs as a percentage of Gross Advances=
Gross NPA/Gross Advances
3. Net Advances= Gross Advances - Deductions
4. Deductions= Provisions held in the case of NPA
Accounts & RVS
5. Net NPAs = Gross NPAs minus Deductions
6. Net NPAs as percentage of Net Advances = Net
NPAs/ Net Advances (in %).
25. Particulars Rs.in cr
1 Standard Advances 1600
2 Gross NPAs 400
3 Gross Advances * (1+2) 2000
4 Gross NPA as a percentage of Gross Advances (2/3) (in %) 20
5 Deductions 152
(i) Provisions held in the case of NPA Accounts as per asset classification 150
(ii) DICGC / ECGC /CGTMSE claims received and held pending adjustment 1
(iii) Part payment received and kept in Sundry A/c, URI or any other similar A/c 1
6 Net Advances (3-5) 1848
7 Net NPAs {2-5 (i+ ii+ iii)} 248
8 Net NPAs as percentage of Net Advances (7/6) (in %) 13.42
* For the purpose of this Statement, ’Gross Advances’ mean all outstanding loans and
advances including advances for which refinance has been received but excluding
rediscounted bills, and advances written off at Head Office level (Technical write off).
GROSS & NET ADVANCES AND NPAS
26. IMPORTANT MENUS IN FINACLE (DR-MODE)
MENU USE TO KNOW
MISRPT-LOANS-LAA003 OVERDUE LOAN POSITION
EOD- LATEST OVERLIMITS OVERDRAWN POSITION IN CC/OD A/Cs
EOD- LATEST DEBIT BALANCE OVERDRAWN POSITION IN SB/CD A/Cs
MISRPT- LOANS- REVPEND
MISRPT- CCIS- REVDUE
OVERDUE REVIEW POSITION
MISRPT- LOANS- OVDSTK OVERDUE STOCK STATEMENT
MISRPT- LOANS- NEGSTK INSUFFICIENT CREDIT TOWARDS INTEREST DEBIT
MISRPT- CCIS- INSPDUE PENDING INSPECTION POSITION
MISRPT- CCIS- INSU_EXP PENDING INSURANCE POSITION
MISRPT- CCIS- REN_DOCU PENDING POSITION OF RENEWAL OF DOCUMENTS