Question

    What is the minimum provision percentage on Doubtful

    Assets classified under IRAC norms (Doubtful for more than 1 year)?
    A 10% Correct Answer Incorrect Answer
    B 20% Correct Answer Incorrect Answer
    C 25% Correct Answer Incorrect Answer
    D 40% Correct Answer Incorrect Answer
    E 100% Correct Answer Incorrect Answer

    Solution

    As per RBI’s IRAC norms: • If a loan is Doubtful for more than 1 year, 40% provisioning is required on the secured portion. • The unsecured portion requires 100% provisioning.

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