All posts by Tina Saha - 374. page

Professional Tax Consultant and Article Writer

Classification Based on Nature and Extent of Security (Section B) Different classifications under section B will be as follows: (a) All advances or part of advances, which are secured9 by […]

Classification Based on Nature of Advance (Section A) Different classifications under section A will be as follows: (a) In classification under section ‘A’, all outstandings – in India as well […]

Balance Sheet Disclosure The Third Schedule to the Act requires classification of advances made by a bank from three different angles, viz., nature of advance, nature and extent of security, […]

Auditor’s Report in case of Bank Borrowers : The RBI vide its circular no. DBOD.No. CAS(COD)BC.146/27-77 dated December 22, 1977 had prescribed that all borrowers having credit limit of Rs.10 […]

Disclosure Requirements : Banks which purchase nonperforming financial assets from other banks shall be required to make the following disclosures in the Notes on Accounts to their Balance sheets: A. […]

Exposure Norms : The purchasing bank will reckon exposure on the obligor of the specific financial asset. Hence these banks should ensure compliance with the prudential credit exposure ceilings (both […]

Capital Adequacy : For the purpose of capital adequacy, banks should assign 100% riskweights to the non-performing financial assets purchased from other banks. In case the nonperforming asset purchased is […]

Accounting of Recoveries : Any recovery in respect of a non-performing asset purchased from other banks should first be adjusted against its acquisition cost. Recoveries in excess of the acquisition […]

Books of Purchasing Bank : The provisioning norms for books of purchasing bank are as under: The asset shall attract provisioning requirement appropriate to its asset classification status in the […]

Books of Selling Bank The provisioning norms for books of selling bank are as under: (i) When a bank sells its nonperforming financial assets to other banks, the same will […]