Asset Classification and Provisioning Norms Part III

Asset Classification and Provisioning Norms (Part III)

• Chapter 28: Covers asset classification and provisioning norms
• Module: BFM Module - D
• Case Study: Focuses on NPA provisioning
• Year Ended: March 31, 2024
• Bank Advances: Details provided in table format, including asset classification, outstanding amount (Cr.), and secured amount (out of the total amount) for various categories (standard, substandard, doubtful for different periods, and loss).
• Question 1: How much provisioning bank needs to make for Standard Assets? (Answer options provided)
• Question 2: How much provisioning bank needs to make for Sub-Standard Assets? (Answer options provided)
• Question 3: How much provisioning bank needs to make for Doubtful assets up to one year? (Answer options provided)
• Question 4: How much provisioning bank needs to make for Doubtful assets from one year up to three years? (Answer options provided)
• Question 5: How much provisioning bank needs to make for Doubtful assets for more than three years? (Answer options provided)
• Question 6: How much provisioning bank needs to make for Loss Assets? (Answer options provided)
• Question 7: Total provision by bank for bad debts (amount)
• Question 8: Factors considered while making Prompt Corrective Action (PCA) decisions by RBI (list of factors)
• Question 9: Situations leading to accelerated provisioning by a bank (conditions)
• Question 10: Basis for asset classification of accounts under consortium (criteria)
• Solution: Provides calculations and solutions to the previous questions
• Asset Classification Table (Page 7): Table showing asset classification and corresponding provisioning percentages for secured and unsecured portions for various categories (sub-standard, doubtful).
• Provision Calculation Table (Page 8): Table calculating the provision for each asset category based on provided amounts and percentages.

This quiz focuses on Chapter 28 of the BFM Module - D, which covers asset classification and provisioning norms for banks. It includes case studies on NPA provisioning and questions related to the provisioning needs for various asset categories as per the year ended March 31, 2024.