Question

How much provision is required for an asset which is there in a doubtful category 1-3 years?

Q: Answer-How much provision is required for an asset which is there in a doubtful category 1-3 years?

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 lsquodoubtfulrsquo category Provisioning requirement Up to one year 25 One to three years 40 More than three years 100