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Loan Classification & Provisioning 2024

The document outlines the classification and provisioning requirements for loans based on BRPD Master Circular # 15, detailing various categories of loans and their corresponding provisioning percentages based on the duration of overdue payments. It also includes guidelines for rescheduling loans according to BRPD Master Circular # 16, specifying maximum validity periods and down payment requirements for different types of loans. The document provides a comprehensive framework for managing loan classifications and provisions to ensure financial stability.

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jamunabank
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59 views2 pages

Loan Classification & Provisioning 2024

The document outlines the classification and provisioning requirements for loans based on BRPD Master Circular # 15, detailing various categories of loans and their corresponding provisioning percentages based on the duration of overdue payments. It also includes guidelines for rescheduling loans according to BRPD Master Circular # 16, specifying maximum validity periods and down payment requirements for different types of loans. The document provides a comprehensive framework for managing loan classifications and provisions to ensure financial stability.

Uploaded by

jamunabank
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Classification & Provisioning

Based on BRPD Master Circular # 15, Dated: 17-Nov-2024

CL Categories Period of past due or overdue Provision

STD-0 No past due or overdue 1% of loan outstanding

provision
General
STD-1 1 day ≤ STD-1 <1 month 1% of loan outstanding
Unclassified
STD-2 1 month ≤ STD-2 <2 months 1% of loan outstanding

SMA 2 months ≤ SMA <3 months 5% of loan outstanding

SS 3 months ≤ SS <6 months 20% of base for provision

Provision
Specific
Classified DF 6 months ≤ DF <12 months 50% of base for provision

B/L ≥ 12 months 100% of base for provision

Base for Provision = Outstanding balance of the classified loans - Amount of Interest Suspense -
Value of eligible collateral
If the collateral is not 1) under lien deposit in same Bank
2) Government bond/savings certificate under lien
3) Government/BB/AAA-rated MDB guarantee (e.g. ADB, IBRD, EBRD, IFDB,
ISDB, IDB)
Then Base for Provision will be greater value between Base for Provision & 15% of OS balance.
Value of Eligible Collateral:
Name of Collateral Value
Deposit under lien against the loan 100%
Government bond/savings certificate under lien 100%
Government/BB/MDB guarantee 100%
Gold or gold ornaments pledged with the bank 100% of the market value
Easily marketable commodities kept under bank
50% of the market value
control
Land and Building mortgaged with the bank Max. 50% of the market value
50% of the average market value for last 06
months/
Shares traded in stock exchange 50% of the face value/
50 % of the last closing price, whichever is
lowest.

CL-1 is the compilation/summary of 4 other forms.


CL-2 is for reporting loan classification of Continuous Loan;
CL-3 is for reporting loan classification of Demand Loan;
CL-4 is for reporting loan classification of Fixed Term Loan;
CL-5 is for reporting loan classification of Short-term Agricultural Credit.
Rescheduling
Based on BRPD Master Circular # 16, Dated: 18-Jul-2022

Max validity with grace


Down payment
period
Type of Amount of
1st +
Advance outstanding 3rd 4th
2nd 3rd time 4th time 1st + 2nd rescheduling
reschedule reschedule
time
7% of expired installment /
<100
6 years 5 years 4 years 4.5% of total outstanding,
crore
which one is lower
≤100 crore 6% of expired installment /
Term Loan but 7 years 6 years 5 years 3.5% of total outstanding,
<500 crore which one is lower
5% of expired installment / 1% more 2% more
≤500
8 years 7 years 6 years 2.5% of total outstanding, than 1st & 2ndthan 1st & 2nd
crore
which one is lower reschedule reschedule
<50 crore 5 years 4 years 3 years 4%
≤50 crore
CC & 3% of total outstanding, but
but 6 years 5 years 4 years
Demand not less than 2 crore
<300 crore
≤300 2.5% of total outstanding,
7 years 6 years 5 years
crore but not less than 9 crore
1st time Further time
Agriculture, Any
N.A.
Micro credit amount 3 years 2.5 years

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