npa size chart

12.1.5 While the borrowers indulging in frauds and malfeasance will continue to remain ineligible for restructuring, banks may review the reasons for classification of the borrowers as wilful defaulters, specially in old cases where the manner of classification of a borrower as a wilful defaulter was not transparent, and satisfy itself that the borrower is in a position to rectify the wilful default. In these four sets of guidelines on restructuring of advances, the differentiations were broadly made based on whether a borrower is engaged in an industrial activity or a non-industrial activity. However, the taking over institution, on taking over such assets, should make provisions treating the account as NPA from the actual date of it becoming NPA even though the account was not in its books as on that date. 5.6.1 There have been instances where the projects have been found to be viable by the creditors but the accounts could not be taken up for restructuring under the CDR system as they fell under 'doubtful' category. This practice raises concern as some borrowers may find it difficult to service the loans once the normal interest rate, which is higher than the rate applicable in the initial years, becomes effective. B. For the purpose of capital adequacy, banks should assign 100% risk weights to the non­performing financial assets purchased from other banks. (vi) Loans to distressed farmers indebted to non-institutional lenders. ), closing balances, provisions held, technical write-offs, etc. RBI/2014-15/74 In the case of restructured accounts classified as 'standard', the income, if any, generated by these instruments may be recognised on accrual basis. When a bank restructures an account a second (or more) time(s), the account will be considered as a 'repeatedly restructured account'. These measures are intended to turn-around the entity/company without any change in terms and conditions of the loan. 13. A bank may voluntarily make specific provisions for advances at rates which are higher than the rates prescribed under existing regulations, to provide for estimated actual loss in collectible amount, provided such higher rates are approved by the Board of Directors and consistently adopted from year to year. Alternatively, they can be treated as part of Tier II capital within the overall ceiling of 1.25 % of total risk weighted assets. (d) housing loans extended at teaser rates and restructured advances as as indicated in Para 5.9.13 and 12.4 respectively; (e) all other loans and advances not included in (a) (b) and (c) above at 0.40 per cent. (b) Banks/ FIs, which propose to sell to SC/RC their financial assets should ensure that the sale is conducted in a prudent manner in accordance with a policy approved by the Board. i) Originating Bank: The asset classification and provisioning rules in respect of the exposure representing the Minimum Retention Requirement (MRR) of the Originator of the asset would be as under: a) The originating bank may maintain a consolidated account of the amount representing MRR if the loans transferred are retail loans. 12.4.3 The total provisions required against an account (normal provisions plus provisions in lieu of diminution in the fair value of the advance) are capped at 100% of the outstanding debt amount. RBI would also share such information with other financial sector regulators/Ministry of Corporate Affairs (MCA)/Comptroller and Auditor General (CAG). If restructuring is not found viable, the creditors would then be free to take necessary steps for immediate recovery of dues and / or liquidation or winding up of the company, collectively or individually. However, the stand-still clause will be applicable only to any civil action either by the borrower or any lender against the other party and will not cover any criminal action. In case the advance covered by CGTMSE or CRGFTLIH guarantee becomes non­performing, no provision need be made towards the guaranteed portion. (Defined in our circular reference DBOD.No.BP.BC. 4.2.2 Banks should establish appropriate internal systems (including technology enabled processes) for proper and timely identification of NPAs, especially in respect of high value accounts. where moratorium is available for payment of interest, payment of interest becomes 'due' only after the moratorium or gestation period is over. 3 /20.16.003/2013-14 dated July 1, 2013 on ‘Wilful Defaulters’ updated from time to time. Hence these banks should ensure compliance with the prudential credit exposure ceilings (both single and group) after reckoning the exposures to the obligors arising on account of the purchase. Illustratively, the parameters may include the Debt Equity Ratio, Debt Service Coverage Ratio, Liquidity/Current Ratio and the amount of provision required in lieu of the diminution in the fair value of the restructured advance, etc. 6 lakh crore. (c) The bank re-assesses the viability of the project before approving the enhancement of scope and fixing a fresh DCCO. If the derivative contract is not terminated on the overdue receivable remaining unpaid for 90 days, in addition to reversing the crystallised receivable from Profit and Loss Account as stipulated in para (d) above, the positive MTM pertaining to future receivables may also be reversed from Profit and Loss Account to another account styled as ‘Suspense Account – Positive MTM’. This norm would also apply to zero coupon bonds or other instruments which seek to defer the liability of the issuer. The CDR Mechanism has been designed to facilitate restructuring of advances of borrowers enjoying credit facilities from more than one bank / Financial Institution (FI) in a coordinated manner. Accordingly, banks were advised to achieve this norm not later than end-September 2010. iii. They can only be utilised for making specific provisions in extraordinary circumstances as mentioned above. On such debentures, income should be recognised only on realisation basis. The repayment period should be fixed by taking into account the life cycle of the project and cash flows from the project. (ii) Retention of the asset classification of the restructured account in the pre-restructuring asset classification category, 15.2.1 Incentive for quick implementation of the restructuring package. The commitment of the SC / RC to redeem the securities must be unconditional and not linked to the realization of the assets. (Rajesh Verma) 1000 million and above. A sub-standard asset is an asset classified as an NPA for less than 12 months. 11.01.005/ 96­97, Assessments relating to asset valuation and loan loss provisioning, Income Recognition Asset Classification and Provisioning ­Agricultural Advances, Prudential Norms ­Capital Adequacy, Income Recognition Asset Classification and Provisioning, Classification of

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