📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    ⚡ Month End Offer - Flat 52% Off On All Courses! Enroll Now ⚡
    00:00:00 AM Left

    Question

    What is the provisioning requirement for a standard

    asset for fund based facilities of Farm Credit to agricultural activities, individual housing loans and Small and Micro Enterprises (SMEs) sectors
    A 0.25% Correct Answer Incorrect Answer
    B 0.40% Correct Answer Incorrect Answer
    C 1% Correct Answer Incorrect Answer
    D 2% Correct Answer Incorrect Answer
    E 5% Correct Answer Incorrect Answer

    Solution

    The provisioning requirements for all types of standard assets stands as below. Banks should make  general provision for standard assets at the following rates for the funded outstanding on global loan portfolio basis:

    • Farm Credit to agricultural activities, individual housing loans and Small and Micro Enterprises (SMEs) sectors at 0.25 per cent;
    • advances to Commercial Real Estate (CRE) Sector at 1.00 per cent;
    • advances to Commercial Real Estate – Residential Housing Sector (CRE - RH) at 0.75 per cent
    • housing loans extended at teaser rates
    • restructured advances – as stipulated in the prudential norms for restructuring of advances.
    • All other loans and advances not included above at 0.40 per cent.

    Practice Next
    More Financial Management Questions

    Relevant for Exams:

    ask-question