New Register here for RBI, SEBI & NABARD strategy workshop! April 9 at 7 PM

    Question

    What is the provision required for the secured portion

    of an asset classified as Substandard Asset according to RBI’s IRAC guidelines?
    A 10% Correct Answer Incorrect Answer
    B 15% Correct Answer Incorrect Answer
    C 20% Correct Answer Incorrect Answer
    D 25% Correct Answer Incorrect Answer
    E 40% Correct Answer Incorrect Answer

    Solution

    When an asset has been classified as NPA for a period of less than or equal to 12 months, it is considered a "Substandard Asset." In case of Sub standard assets, a provision of 15% is to be made if the loan is secured. In case of unsecured loan, the provision requirement is 25%.

    Practice Next