Question
How much provision is required for an asset which is
there in a doubtful category upto 12 months?Solution
Doubtful assets middot; 100 percent of the extent to which the advance is not covered by the realisable value of the security to which the bank has a valid recourse and the realisable value is estimated on a realistic basis. middot; In regard to the secured portion, provision may be made on the following basis, at the rates ranging from 25 percent to 100 percent of the secured portion depending upon the period for which the asset has remained doubtful:
| Period for which the advance has remained in lsquo;doubtfulrsquo; category | Provisioning requirement (%) |
| Up to one year | 25 |
| One to three years | 40 |
| More than three years | 100 |
- What is the helpline number for India’s AI-enabled National Consumer Helpline (NCH)?
Which bank will sign a 200 million euro (about Rs 1,800 crore) Line of Credit (LoC) with the European Investment Bank (EIB) for supporting climate act...
Former cricketer Ajay Jadeja was recently declared heir to which royal throne?
What role does the Executive Committee play in the Codex Alimentarius Commission (CAC)?
What is the purpose of the centralized portal being set up by RBI?
India’s first lithium cell manufacturing facility is launched in which state?
Which Steel company will manufacture India's first fire-resistant steel structures at its unit in Raigarh, Chhattisgarh?
What is the annual seedling production capacity target for the modern nurseries under the Clean Plant program?
      Who has been appointed as mentor by Afghanistan cricket team for ICC Men's Cricket World Cup 2023?
Kotak Mahindra Bank became India’s first custodian to issue which of the following in a fully digital manner using electronic signatures?
Relevant for Exams:
