Question

A term loan of ₹70 crore is classified as Doubtful. Realisable value of primary security is ₹40 crore and collateral security is ₹10 crore. The balance exposure is unsecured. What is the minimum provisioning implication?

A 25% on entire amount
B 40% on entire amount
C 100% on unsecured portion only
D 100% on secured portion only
E No provision required
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