All posts by Tina Saha - 367. page

Professional Tax Consultant and Article Writer

Provisioning Norms for Leased Assets i) Substandard assets a) 15 percent of the sum of the net investment in the lease and the unrealised portion of finance income net of […]

Provisioning requirements for derivative exposures Credit exposures computed as per the current marked to market value of the contract, arising on account of the interest rate & foreign exchange derivative […]

Provisioning for Loans and Advances The RBI’s Master Circular of July 1, 2015 on Income Recognition, Asset Classification and Provisioning Pertaining to Advances contains the principles to be followed by […]

Upgradation of Loan Accounts Classified as NPAs (i) If arrears of interest and principal are paid by the borrower in the case of loan accounts classified as NPAs, the account […]

Loss assets A loss asset is one where loss has been identified by: (a) the bank; or (b) the internal or external auditors; or (c) the RBI inspection. but the […]

Doubtful assets With effect from March 31, 2005, an asset is classified as doubtful if it has remained in the sub-standard category for a period of 12 months. Such an […]

Sub-standard assets With effect from March 31, 2005, a sub-standard asset is one which has remained NPA for a period less than or equal to 12 months. Such an asset […]

Demonetisation – Effect on Asset Classification Consequent upon withdrawal of the legal tender status of the INR 500 and INR 1,000 notes w.e.f. November 8, 2016, the RBI had issued […]

Classification of Advances The guidelines require banks to classify their advances into four broad categories for the purpose of provisioning as follows: (a) Standard assets A standard asset is one […]

Memorandum Account On an account turning NPA, banks should reverse the interest already charged and not collected by debiting Profit and Loss account, and stop further application of interest. However, […]