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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

 


Provisioning Formula

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

 

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