This document discusses various policies and guidelines related to loan management for banks in Bangladesh. It covers topics such as loan classification and provisioning, loan rescheduling, write offs, loan categories, and stimulus funds. Key points include:
- Loans are classified based on their status (unclassified, SME, substandard, doubtful, bad) using objective criteria like number of months past due. Higher risk loans require higher loan loss provisions.
- Rescheduling allows extending repayment terms for non-performing loans if the borrower meets certain conditions. Maximum rescheduling periods depend on loan type and classification.
- Stimulus funds provide subsidized loans to borrowers affected by COVID-19, with
This presentation provides complete study ofcredit risk management,how it was performed in yester years ,how it is taken care nowadays and what is the road ahead in future
I’m a young Pakistani Blogger, Academic Writer, Freelancer, Quaidian & MPhil Scholar, Quote Lover, Co-Founder at Essar Student Fund & Blueprism Academia, belonging from Mehdiabad, Skardu, Gilgit Baltistan, Pakistan.
I am an academic writer & freelancer! I can work on Research Paper, Thesis Writing, Academic Research, Research Project, Proposals, Assignments, Business Plans, and Case study research.
Expertise:
Management Sciences, Business Management, Marketing, HRM, Banking, Business Marketing, Corporate Finance, International Business Management
For Order Online:
Whatsapp: +923452502478
Portfolio Link: https://blueprismacademia.wordpress.com/
Email: arguni.hasnain@gmail.com
Follow Me:
Linkedin: arguni_hasnain
Instagram : arguni.hasnain
Facebook: arguni.hasnain
This presentation provides complete study ofcredit risk management,how it was performed in yester years ,how it is taken care nowadays and what is the road ahead in future
I’m a young Pakistani Blogger, Academic Writer, Freelancer, Quaidian & MPhil Scholar, Quote Lover, Co-Founder at Essar Student Fund & Blueprism Academia, belonging from Mehdiabad, Skardu, Gilgit Baltistan, Pakistan.
I am an academic writer & freelancer! I can work on Research Paper, Thesis Writing, Academic Research, Research Project, Proposals, Assignments, Business Plans, and Case study research.
Expertise:
Management Sciences, Business Management, Marketing, HRM, Banking, Business Marketing, Corporate Finance, International Business Management
For Order Online:
Whatsapp: +923452502478
Portfolio Link: https://blueprismacademia.wordpress.com/
Email: arguni.hasnain@gmail.com
Follow Me:
Linkedin: arguni_hasnain
Instagram : arguni.hasnain
Facebook: arguni.hasnain
RESTRUCTURING OF MSMEs & CREDIT GUARANTEE SCHEME FOR SUBORDINATE DEBT (CGSSD)Ajayan Kavungal Anat
This is a brief presentation to give insights into the
new guidelines issued by Reserve Bank of India for
‘Restructuring of MSMEs’ and also on Subordinate
Debt for Stressed MSMEs’
PPP Loan Forgiveness and Tax Considerations for the Construction IndustryWithum
Join Withum and CFMA South Jersey Chapter for the latest update on PPP loan forgiveness for the construction industry.
As the SBA continues to release guidance, many questions remain surrounding PPP Loan forgiveness. Presented by Withum’s Daniel Mayo, National Lead, Federal Tax Policy, Frank Boutillette, CPA, CGMA, Ron Martino, CPA, CCIFP, Joe O’Drain , CPA and Kim Hullfish, CCIFP, MBA, CRIS, Controller at C. Abbonizio Contractors Inc. and CFMA South Jersey Chapter Board Member. This webinar will provide guidance on PPP Loan Forgiveness and how you can prepare your construction organization for maximum forgiveness.
Attendees will be able to:
-Interpret the updated PPP Loan Forgiveness Application Forms by the SBA (Standard and EZ applications)
- Assess corporate tax provisions of the CARES act
- Identify Accounting/GAAP treatment of PPP loan forgiveness on year-end financial statements
CA NOTES ON FINANCIAL REPORTING
FREE AFFIDAVITS AND NOTICES FORMATS
FREE AGREEMENTS AND CONTRACTS FORMATS
FREE LLB LAW NOTES
FREE CA ICWA NOTES
FREE LLB LAW FIRST SEM NOTES
FREE LLB LAW SECOND SEM NOTES
FREE LLB LAW THIRD SEM NOTES
FREE LLB LAW FOURTH SEM NOTES
FREE LLB LAW FIFTH SEM NOTES
FREE LLB LAW SIXTH SEM NOTES
FREE CA ICWA FOUNDATION NOTES
FREE CA ICWA INTERMEDIATE NOTES
FREE CA ICWA FINAL NOTES
KANOON KE RAKHWALE INDIA
HIRE LAWYER ONLINE
LAW FIRMS IN DELHI
CA FIRM DELHI
VISIT : https://www.kanoonkerakhwale.com/
VISIT : https://hirelawyeronline.com/
RMD24 | Retail media: hoe zet je dit in als je geen AH of Unilever bent? Heid...BBPMedia1
Grote partijen zijn al een tijdje onderweg met retail media. Ondertussen worden in dit domein ook de kansen zichtbaar voor andere spelers in de markt. Maar met die kansen ontstaan ook vragen: Zelf retail media worden of erop adverteren? In welke fase van de funnel past het en hoe integreer je het in een mediaplan? Wat is nu precies het verschil met marketplaces en Programmatic ads? In dit half uur beslechten we de dilemma's en krijg je antwoorden op wanneer het voor jou tijd is om de volgende stap te zetten.
VAT Registration Outlined In UAE: Benefits and Requirementsuae taxgpt
Vat Registration is a legal obligation for businesses meeting the threshold requirement, helping companies avoid fines and ramifications. Contact now!
https://viralsocialtrends.com/vat-registration-outlined-in-uae/
What are the main advantages of using HR recruiter services.pdfHumanResourceDimensi1
HR recruiter services offer top talents to companies according to their specific needs. They handle all recruitment tasks from job posting to onboarding and help companies concentrate on their business growth. With their expertise and years of experience, they streamline the hiring process and save time and resources for the company.
Digital Transformation and IT Strategy Toolkit and TemplatesAurelien Domont, MBA
This Digital Transformation and IT Strategy Toolkit was created by ex-McKinsey, Deloitte and BCG Management Consultants, after more than 5,000 hours of work. It is considered the world's best & most comprehensive Digital Transformation and IT Strategy Toolkit. It includes all the Frameworks, Best Practices & Templates required to successfully undertake the Digital Transformation of your organization and define a robust IT Strategy.
Editable Toolkit to help you reuse our content: 700 Powerpoint slides | 35 Excel sheets | 84 minutes of Video training
This PowerPoint presentation is only a small preview of our Toolkits. For more details, visit www.domontconsulting.com
The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
Buy Verified PayPal Account | Buy Google 5 Star Reviewsusawebmarket
Buy Verified PayPal Account
Looking to buy verified PayPal accounts? Discover 7 expert tips for safely purchasing a verified PayPal account in 2024. Ensure security and reliability for your transactions.
PayPal Services Features-
🟢 Email Access
🟢 Bank Added
🟢 Card Verified
🟢 Full SSN Provided
🟢 Phone Number Access
🟢 Driving License Copy
🟢 Fasted Delivery
Client Satisfaction is Our First priority. Our services is very appropriate to buy. We assume that the first-rate way to purchase our offerings is to order on the website. If you have any worry in our cooperation usually You can order us on Skype or Telegram.
24/7 Hours Reply/Please Contact
usawebmarketEmail: support@usawebmarket.com
Skype: usawebmarket
Telegram: @usawebmarket
WhatsApp: +1(218) 203-5951
USA WEB MARKET is the Best Verified PayPal, Payoneer, Cash App, Skrill, Neteller, Stripe Account and SEO, SMM Service provider.100%Satisfection granted.100% replacement Granted.
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
Skye Residences | Extended Stay Residences Near Toronto Airportmarketingjdass
Experience unparalleled EXTENDED STAY and comfort at Skye Residences located just minutes from Toronto Airport. Discover sophisticated accommodations tailored for discerning travelers.
Website Link :
https://skyeresidences.com/
https://skyeresidences.com/about-us/
https://skyeresidences.com/gallery/
https://skyeresidences.com/rooms/
https://skyeresidences.com/near-by-attractions/
https://skyeresidences.com/commute/
https://skyeresidences.com/contact/
https://skyeresidences.com/queen-suite-with-sofa-bed/
https://skyeresidences.com/queen-suite-with-sofa-bed-and-balcony/
https://skyeresidences.com/queen-suite-with-sofa-bed-accessible/
https://skyeresidences.com/2-bedroom-deluxe-queen-suite-with-sofa-bed/
https://skyeresidences.com/2-bedroom-deluxe-king-queen-suite-with-sofa-bed/
https://skyeresidences.com/2-bedroom-deluxe-queen-suite-with-sofa-bed-accessible/
#Skye Residences Etobicoke, #Skye Residences Near Toronto Airport, #Skye Residences Toronto, #Skye Hotel Toronto, #Skye Hotel Near Toronto Airport, #Hotel Near Toronto Airport, #Near Toronto Airport Accommodation, #Suites Near Toronto Airport, #Etobicoke Suites Near Airport, #Hotel Near Toronto Pearson International Airport, #Toronto Airport Suite Rentals, #Pearson Airport Hotel Suites
Improving profitability for small businessBen Wann
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s DholeraAvirahi City Dholera
The Tata Group, a titan of Indian industry, is making waves with its advanced talks with Taiwanese chipmakers Powerchip Semiconductor Manufacturing Corporation (PSMC) and UMC Group. The goal? Establishing a cutting-edge semiconductor fabrication unit (fab) in Dholera, Gujarat. This isn’t just any project; it’s a potential game changer for India’s chipmaking aspirations and a boon for investors seeking promising residential projects in dholera sir.
Visit : https://www.avirahi.com/blog/tata-group-dials-taiwan-for-its-chipmaking-ambition-in-gujarats-dholera/
Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
Discover the innovative and creative projects that highlight my journey throu...dylandmeas
Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
• The best and most practical approach to implementing workplace discipline.
• Three (3) key tips to maintain a disciplined workplace.
LA HUG - Video Testimonials with Chynna Morgan - June 2024Lital Barkan
Have you ever heard that user-generated content or video testimonials can take your brand to the next level? We will explore how you can effectively use video testimonials to leverage and boost your sales, content strategy, and increase your CRM data.🤯
We will dig deeper into:
1. How to capture video testimonials that convert from your audience 🎥
2. How to leverage your testimonials to boost your sales 💲
3. How you can capture more CRM data to understand your audience better through video testimonials. 📊
1. Investments or Loans and
Advances
Loan Classification and Provisioning
Client Selection & CLAnalysis
Loan Rescheduling
Loan Write Off
1
2. Loan Classification and Provisioning
BRPD Circular No Dated
14 September 23, 2012
19 December 27, 2012
05 May 29, 2013
16 November 18, 2014
08 August 02, 2015
03 April 21, 2019
2
3. Loan Classification and Provisioning
Changes During 2021
BRPD Circular
No
Dated Circular
link
03 January 31, 2021 Click here
05 March 24, 2021 Click here
19 August 26, 2021 Click here
Circular Letter-50 December 14, 2021 Click here
Circular Letter-52 December 29, 2021 Click here
Circular Letter-53 December 30, 2021 Click here
3
7. Categories of Loans and Advances
Categories of Loans & Advances
Continuous
Loan
Demand Loan
Fixed Term
Loan
Short – term and
Agricultural &
Micro – Credit
7
8. Definition of Loan Categories
Continuous loan : The loan accounts in which transactions may be made
within certain limit and have an expiry date for full adjustment will be treated as
Continuous Loan. Examples are: Cash Credit, Overdraft, etc.
Demand Loan : The loans that become repayable on demand by the bank will
be treated as Demand Loan. If any contingent or any other liabilities are turned
to forced loan (i.e. without any prior approval as regular loan) those too will be
treated as Demand Loan. Such as: Forced Loan against Imported Merchandise,
Payment against Document, Foreign Bill Purchased, and Inland Bill Purchased,
etc. 8
9. Fixed Term Loan: The loans, which are repayable within a specific time period
under a specific repayment schedule, will be treated as Fixed Term Loan.
Short-term Agricultural & Micro-Credit: Short-term Agricultural Credit will
include the short-term credits as listed under the Annual Credit Programme
issued by the Agricultural Credit and Financial Inclusion Department (ACFID)
of Bangladesh Bank.
9
10. As per BRPD circular no. 03 dated 21 April, 2019 If a continuous loan or demand loan
is not repaid/renewed within the fixed expiry date for repayment or after demand by the
bank will be treated as past due/overdue from the following day of the expiry date.
Practical Example
10
Past due or Overdue
11. As per BRPD circular no. 14 dated 23 Sept 2012 & 03 dated 21 April, 2019 In
case of any installment(s) or part of installment(s) of a Fixed Term Loan and the
short term Agricultural & Micro credit loan is not repaid within the fixed expiry
date, the amount of unpaid installment(s) will be treated as past due/overdue
after six months of the expiry date.
Practical Example
11
Past due or Overdue
13. Objective Criteria:
Categories of
Loans
UC (Unclassified) Classified
STD
(Standard)
SMA( Special
Mention
Account)
SS (Sub –
Standard)
DF (Doubtful) BL (Bad/Loss)
Continuous 0-1.99
Months
2-2.99
Months
03-8.99
Months
9 – 11.99
Months
12 or beyond
Months
Demand 0-1.99
Months
2-2.99
Months
03-8.99
Months
9 – 11.99
Months
12 or beyond
Months
Fixed term 0-1.99
Months
2-8.99
Months
09-14.99
Months
15 – 17.99
Months
18 or beyond
Months
Short-term
Agricultural &
Micro-Credit
0-12
Months -
After 12
months
After 36
months
After 60 Months
13
14. Accounting for interest of Classified Loan
If any loan or advance is classified as 'Sub-standard' and 'Doubtful', interest
accrued on such loan will be credited to Interest Suspense Account, instead of
crediting the same to Income Account.
In case of rescheduled loans the unrealized interest, if any, will be credited to
Interest Suspense Account, instead of crediting the same to Income Account.
As soon as any loan or advance is classified as 'Bad/Loss', charging of interest in
the same account will cease.
14
15. In case of filing a law-suit for recovery of such loan, interest for the period
till filing of the suit can be charged in the loan account in order to file the
same for the amount of principal plus interest. But interest thus charged in the
loan account has to be preserved in the 'Interest Suspense' account.
If any interest is charged on any 'Bad/Loss' account for any other special
reason, the same will be preserved in the 'Interest Suspense' account.
If classified loan or part of it is recovered i.e., real deposit is effected in the
loan account, first the interest charged and accrued but not charged is to be
recovered from the said deposit and the principal to be adjusted afterwards.
15
Accounting for interest of Classified Loan
16. Maintenance of Provision
Particulars
Short
term
Agri.
Credi
t
Consumer Financing
SMEF
Special
General
Provision
COVID-
19 For
SME
Loan
Loans to
BHs/MBs/S
Ds
All
other
Credit
Special
General
Provision
COVID-19
(Other than
SME)
Other
than
HF, LP
HF LP
UC
Standar
d
1% 2% 1% 2% 0.25% 1.5% 2% 1% 2%
SMA - 2% 1% 2% 0.25% 1.5% 2% 1% 2%
Classifie
d
SS 5% 20% 20% 20% 5% 20% 20% -
DF 5% 50% 50% 50% 20% 50% 50% -
B/L 100% 100% 100% 100% 100% 100% 100% -
16
17. Base for Provision
Calculation of
Base for
Provision
Outstanding – Interest
Suspense – Value of Eligible
Collateral Security
a. Deposit with the same bank under
lien against the loan,
b. Government bond/savings
certificate under lien,
c. Guarantee given by Government
or Bangladesh Bank.
Outstanding – Interest Suspense – Value of
Eligible Collateral Security
Or
15% of out standing Balance (Greater of
the above two amounts)
For all other eligible
collateral security
17
18. Eligible Collateral
100% of deposit under lien against the loan
100% of the value of government bond/savings certificate under lien
100% of the value of guarantee given by Government or Bangladesh Bank
100% of the market value of gold or gold ornaments pledged with the bank.
50% of the market value of easily marketable commodities kept under control of
the bank
Maximum 50% of the market value of land and building mortgaged with the
bank
50% of the average market value for last 06 months or 50% of the face value,
whichever is less, of the shares traded in stock exchange.
18
19. Changes Due to COVID-19
Time Extension of Term Loan
As per BRPD Circular No. 03 Dated: 31.01.2021, the maturity of a term
loan may be extended subject to the following conditions and restrictions:
a) The loan must be performing ( Unclassified: Standard or SMA )
c) The maturity date may be extended by a period of time not exceeding
50% of the current remaining time to maturity or maximum 2 years.
19
20. Changes Due to COVID-19
Repayment of Continuous & Demand Loan
• As per BRPD Circular No. 05 Dated: 24.03.2021, All the unclassified continuous
loan at 01.01.2021 which are expired but not renewed, interest charged but not
yet realized on such loan accounts from 01.01.2020 to 31.12.2020 will be repaid
by six equal quarterly instalments from March 2021 to June 2022 along with the
interest that will be charged till June 2022.
• In case of Demand loan outstanding amount must be repaid within March 2021
to December 2022 through 8 equal quarterly instalments.
20
21. Changes Due to COVID-19
Loan Classification
AS per BRPD Circular Letter-53 Dated 30.12.2021, loans can not be
classified(downgraded) if 15% of the total amount due from January 2021 to
December 2021 is repaid within the last working day of December 2021.
Loans should be reported based on the classification status of 01 January 2021
if clients pay only 15% of total instalments due during 2021.
The remaining due amount will be repaid within 1 year after the expiry of
such loan.
21
22. Changes Due to COVID-19
Transfer of Interest to Income Account
As per BRPD Circular Letter no-53 Dated: 30.12.2021, Interest accrued on any
loan account during 2021 can be transferred to income account subject to the
condition that the clients must pay at least 15% of due amount during 2021.
Extra 2% general provision must be maintained against the loan accounts which
took the facilities granted by BRPD 19 Dated: 26.08.2021 and should be added
to “ Special General Provision COVID-19”.
In case of SME loan the said provision shall be 1.5% as per BRPD Circular
letter no. 52 Dated: 29.12.2021.
22
23. Stimulus Fund 2020
1. Any classified client is not allowed for stimulus fund
2. This facility must be approved only for working capital purpose.
3. For new loan client’s ICRRS score must be marginal at least.
4. This facility will be allowable only economically affected by COVID
19 (other than CMSME )
5. This loan facility can not be approved for enhance the business or for
start up new industry or service sector
6. Interest of the loan must be 9% whereas Government will provide 4.5%
interest for the first year.
23
24. Stimulus Fund 2020
7. If any client become classified Bangladesh Bank will not provide
interest for the client
8. Before disbursement: Bangladesh Bank No Objection Certificate
required
9. This loan validity will be maximum 3 years but government will
reimburse the interest portion amount maximum for one year for a
single borrower.
24
25. Stimulus Fund 2021
1. Maximum 4.5% interest can be charged on borrower a/c and the rest
interest has to be preserved on separate a/c which will be subsidized by
government. However, if the borrower fails to pay his portion in due
time, then full interest can be charged on borrower a/c and will be
considered as borrower liability.
2. Payment of Loan
Installment on stimulus fund has to paid in the following manner:
a. Borrower will get extra 6 months grace period from March 2021.
b. After grace period the rest amount has to be paid by 18 equal
monthly installments.
25
26. Stimulus Fund 2021
Approved limit
1. Maximum allowable limit of loan/investment is 30% of the working
capital facility enjoyed as on 31.12.2019 by the client.
2. In case of new client who had not working capital loan, Maximum
allowable limit of loan/investment is 30% of the working capital
facility of the client eligible to enjoy.
If any client taking working capital loan from other bank/banks, eligible
limit is applicable aggregating total working capital loan and similarly
stimulus fund limit will be determined in the same manner.
26
27. Client Selection Criteria
CL analysis
Reschedule Investments
Restructured Investments
Writ clients
BB Inspection Report
Latest Internal Audit Report
Previous year’s External Audit Report
Board Meeting Minutes
EC Meeting Minutes
Top 20 or 50 Clients
Defaulter List published by BB/ High Court
Newly Disbursed Investments
27
28. CL form
1. CL-1 is the complication/summary of 4 other forms
2. CL-2 is for reporting loan classification of Continuous Loan
3. CL-3 is for reporting loan classification of Demand Loan
4. CL-4 is for reporting loan classification of Term Loan
5. CL-5 is for reporting loan classification of Short-term Agricultural and Micro-Credit.
28
29. Loan Rescheduling
GUIDELINES FOR CONSIDERING APPLICATION FOR LOAN
RESCHEDULING
Banks shall comply with the following instructions while considering application for loan
rescheduling of non-performing loan (loans classified as Sub-standard, Doubtful and Bad/Loss):
The bank must have a policy approved by its Board of Directors in place that defines the
circumstances and conditions under which a loan may be rescheduled, consistent with this
circular
When a borrower asks for rescheduling of loan, the bank shall meticulously examine the causes
as to why the loan has become non-performing. If it is detected from such review that the
borrower has diverted funds elsewhere or the borrower is a habitual loan defaulter, the bank shall
not consider the application for loan rescheduling and shall take/continue all legal steps for
recovery of the loans.
29
30. Loan Rescheduling
GUIDELINES FOR CONSIDERING APPLICATION FOR LOAN
RESCHEDULING
If a borrower while applying for rescheduling, pays the required down payment in cash at a time,
the bank must address the application within 03 (three) months upon receipt. If the borrower gives
any cheque, pay order or any other instrument against down payment, the bank must ensure
encashment of such instrument before processing of the rescheduling case. Any previous payment
from time to time shall not be treated as a down payment.
Banks shall review the borrower's cash flow statement, audited balance sheet, income statement
and other financial statements in order to ensure whether the borrower would be able to repay the
rescheduled installments/existing liability or not.
30
31. Time Limit For Rescheduling
These time limits are absolute maximums only, and banks are encouraged to
establish shorter time limits in their internal policies. Each loan that is being
considered for rescheduling should be evaluated on its own merits and not
automatically rescheduled for the maximum time period or rescheduled for the
maximum number of three (03) times.
31
32. Time limit for rescheduling Continuous Loan:
Frequency Classified as Sub-standard Classified as
Doubtful
Classified as
Bad/Loss
First
Rescheduling
Maximum 18 (eighteen)
months from the date of
rescheduling
Maximum 12 (twelve)
months from the date of
rescheduling
Maximum 12 (twelve)
months from the date of
rescheduling
Second
Rescheduling
Maximum 12 (twelve)
months from the date of
Rescheduling
Maximum 09 (nine)
months from the date of
rescheduling
Maximum 09 (nine) months
from the date of rescheduling
Third
Rescheduling
Maximum 06 (six) months
from the date of rescheduling
Maximum 06 (six)
months from the date of
rescheduling
Maximum 06 (six)
months from the date of
rescheduling
32
Conditions: During the rescheduled period all required principal and interest payments must be
made. Rescheduled amount should be repaid in monthly installments. If the amount of defaulted
installments is equal to the amount of 3(monthly) installments, the loan will be classified as
Bad/Loss.
33. Time limit for rescheduling Demand Loan:
Frequency Classified as
Sub-standard
Classified as
Doubtful
Classified as
Bad/Loss
First
Rescheduling
Maximum 12 (twelve) months
from the date of rescheduling
Maximum 09 (nine)months from
the date of rescheduling
Maximum 09 (nine) months from
the date of rescheduling
Second
Rescheduling
Maximum 09 (nine) months from
the date of rescheduling
Maximum 06 (six) months
from the date of
Rescheduling
Maximum 06 (six)
months from the date of
rescheduling
Third
Rescheduling
Maximum 06 (six) months from the
date of rescheduling
Maximum 06 (six) months
from the date of
rescheduling
Maximum 06 (six)
months from the date of
rescheduling
33
Conditions: During the rescheduled period all required principal and interest payments must be made.
Rescheduled amount should be repaid in monthly installments. If the amount of defaulted installments is equal
to the amount of 3(monthly) installments, the loan will be classified as Bad/Loss.
34. Time limit for rescheduling Fixed Term Loan:
The loan which is repayable within a specified time period under a prescribed
repayment schedule is treated as Term Loan. In case of rescheduling of any classified
Fixed Term Loan, following time-limit may be added with the expiry date/repayment
date of last installment to determine the repayment schedule which will be started from
the date of rescheduling. If the loan is rescheduled after the expiry date, the following
time-limit will be applicable from the date of rescheduling:
34
35. Time limit for rescheduling Fixed Term
Loan:
Frequency Classified as
Sub-standard
Classified as
Doubtful
Classified as
Bad/Loss
First
Rescheduling
Maximum 36 (thirty
six)months
Maximum 24 (twenty four)
months
Maximum 24 (twenty
four) months
Second
Rescheduling
Maximum 24 (twenty
four)months
Maximum 18
(eighteen) months
Maximum 18 (eighteen)
months
Third
Rescheduling
Maximum 12
(twelve)months
Maximum 12 (twelve)
months
Maximum 12 (twelve)
months
35
Conditions: During the rescheduled period all required principal and interest payments must be made.
Rescheduled amount should be repaid in monthly/quarterly installments. If the amount of defaulted
installments is equal to the amount of 6 monthly or 2 quarterly installments, the loan will be classified
as Bad/Loss.”
36. Time limit for rescheduling for Short-term Agricultural and
Micro- Credit:
:
36
In case of rescheduling of any classified Short-term Agricultural and Micro-Credit, 6 months may be added
with following time-limit from the day after the expiry date/repayment date of last installment to determine
the repayment schedule which will be started from the date of rescheduling. If the loan is rescheduled after
the expiry date, the following time-limit will be
applicable
First Rescheduling Repayment time limit for rescheduling should not exceed 2 two)
years.
Second Rescheduling Maximum 1(one) year.
Third Rescheduling Maximum 6(six) months.
37. Loan rescheduling restriction
a. If the loan becomes default after third rescheduling, the borrower will be treated
as a habitual loan defaulter and the bank shall not consider for further loan
rescheduling.
b. Approval of loan rescheduling cannot be made below the level at which it was
originally sanctioned. A detailed appraisal report including implications of such
loan rescheduling on the income and other areas of the bank must be placed to
the approving authority at the time of placing the rescheduling proposal.
37
38. DOWN PAYMENT OF TERM LOANS:
a) Application for first time rescheduling will be taken into consideration upon receiving
cash payment of at least 15% of the overdue installments or 10% of the total outstanding
amount of loan, whichever is less.
b) Application for second time rescheduling will be considered upon receiving cash
payment of minimum 30% of the overdue installments or 20% of the total outstanding
amount of loan, whichever is less.
c) Application for rescheduling third time will be considered upon receiving cash payment
of minimum 50% of the overdue installments or 30% of the total outstanding amount of
loan, whichever is less.
d) The rate of down payments for Short-term Agricultural and Micro-Credit will be same as
above. 38
39. DOWN PAYMENT OF DEMAND AND CONTINUOUS
LOAN
First time rescheduling Rate of Down payment
Amount of Overdue Loan Rate of Down payment Second time Second time
Up to Tk.1.00 (one) crore 15%
Cash payment of
minimum 30% of the
overdue installments
or 20% of the total
outstanding amount
of loan, whichever is
less.
Minimum 50% of the
overdue installments or
30% of the total
outstanding amount of
loan, whichever is less,
shall have to be repaid in
cash.
Above Tk.1.00(one) crore
and up to
Tk.5.00(five) crore
10%
(but not less than
Tk.15.00 lac)
Above Tk. 5.00(five)
crore
5%
(but not less than
Tk.50.00 lac)
39
40. NEW FACILITY AFTER RESCHEDULE
• As per BRPD Circular no 06 dated 29 May 2013, After repayment of
minimum 15% of outstanding balance client will be eligible for new
loan facility.
• In case of borrowing from others Banks, the Same rule will be
applicable.
40
41. RESTRICTION ON EXTENDING THE TERM TO
MATURITY OF A TERM LOAN:
The term to maturity of a term loan may be extended subject to the following
conditions and restrictions:
a) The loan must be performing ( Unclassified: Standard or SMA )
b) The decision should be made at the level where the loan was originally
sanctioned
c) The maturity date may be extended by a period of time not exceeding 25%
of the current remaining time to maturity
41
42. Write-off policy
Loan classified as BL can be written-off provided that 3 (three) years have been passed and 100%
provision has been kept.
If 100% provision kept against the account is not sufficient for write-off, then current year’s
income may be debited for loan write-off purpose.
Loan write-off does not mean that the borrower is relieved from his debt obligations and the
banker will not do anything after loan write-off. Rather banker will initiate / continue all out efforts
for recovery of written-off loan liability, and if legal action is not already initiated against the
borrower, then legal action will be initiated against the client with immediate effect.
The bank will open and maintain a separate debt collection unit which will look after recovery of
classified as well as written-off loan accounts. Outside agencies may be deployed in this purpose as
per BRPD Circular no 02/2015.
No Loan/ Investment can be partially written-off.
42
43. Write-off policy
Balance of written-off loan account(s) will be mentioned in the “notes to accounts” of the Annual
Report of the bank.
No Loan/ Investment can be written-off without the authorization of the board of the directors.
The borrower whose loan is written-off will still be treated as loan defaulter and his loan
classification status will be reported in the CIB database of Bangladesh Bank as BLW.
43
44. Loan and Advances Journal
At the time of initial disbursement:
Loan and Advance receivable- Customer A/C……………… Dr.
Deposit – Customer A/C………………………………………………… Cr.
At the time of interest charged on STD loans:
Loan and Advance receivable- Customer A/C………………. Dr.
Interest Income A/C …………………………………………………….. Cr.
At the time of interest charged on Classified Loans (SS, DF, and BL):
Loan and Advance receivable- Customer A/C………………. Dr.
Interest Suspense A/C …………………………………………………. Cr.
44
45. Loan and Advances Journal
At the time of collection/ recovery of STD loans:
Deposit- Customer A/C or Cash or Bank A/C ………………… Dr.
Loan and Advance receivable- Customer A/C……………….……Cr.
At the time of collection/ recovery of Classified loans (SS, DF, BL):
Deposit- Customer A/C or Cash or Bank A/C ………………… Dr.
Interest Suspense A/C …………………………………… …… Dr.
Loan and Advance receivable- Customer A/C……………………. Cr.
Interest Income A/C ……………………………………………… Cr.
At the of making provision:
Income Statement ………………………………………………… Dr.
Provision for loans and advances ………………………………..…. Cr.
45
46. Loan and Advances Journal
At the time of loan rescheduling:
Cash or Bank
A/C…………………………………………………………… Dr.
Interest Suspense A/C ……………………………………..……. Dr.
Provision for loans and advances …………………… .………. Dr.
Interest Income A/C ……………………………………………. … Cr.
Loan and Advance receivable- Customer A/C… …...……………...Cr.
At the time of loans write off:
Income statement (Short fall) …………………………………. Dr.
Provision for loans and advances …………………………..…. Dr.
Interest Suspense A/C …………………………………………..Dr.
Loan and Advance receivable- Customer A/C……………….……..Cr.
46