Loan Classifications and Provisioning (Based on BRPD Circulars)

Loan Classifications and Provisioning
(Based on BRPD Circulars)

 

Types of classification:

1.Standard(STD)
2.Special Mention Account (SMA)
03. Substandard(SS)
04.Doubtful(DF)
05.Bad/Loss

 

Classification Criteria:

For Cottage, Micro and Small:                                                                 In months

Types of Loan	SMA	SS	DF	BL
Demand & Continuous Loan	2	6	18	30
Term Loan	8	12	24	36

 

For all other loans and advances except Cottage, Micro and Small:

               In months

Types of Loan	SMA	SS	DF	BL
Demand & Continuous Loan	2	3	9	12
Term Loan	8	9	15	18

 

Provisioning

CL Status	ST Agri Credit	Consumer financing other than HF LP	HF Under Consumer Finance	Loan to Professionals/Credit Card/ Loan to BH/MB/SD	Cottage/ Micro/ Small	Medium	All other credit
STD	1%	2%	1%	2%	0.25%	0.25%	1%
SMA	-	2%	1%	2%	0.25%	0.25%	1%
SS	5%	20%	20%	20%	5%	20%	20%
DF	5%	50%	50%	50%	20%	50%	50%
BL	100%	100%	100%	100%	100%	100%	100%

 

Base for Provision

 

For Unclassified Loans: Outstanding Balance

 

Restriction on Extending the Term to Maturity of a Unclassified 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