Podcast
Questions and Answers
How much provisioning does a bank need to make for Standard Assets?
How much provisioning does a bank need to make for Standard Assets?
How much provisioning does a bank need to make for Doubtful Assets up to one year?
How much provisioning does a bank need to make for Doubtful Assets up to one year?
How much provisioning does a bank need to make for Doubtful Assets from one year up to three years?
How much provisioning does a bank need to make for Doubtful Assets from one year up to three years?
How much provisioning does a bank need to make for Doubtful Assets for more than three years?
How much provisioning does a bank need to make for Doubtful Assets for more than three years?
Signup and view all the answers
How much provisioning does a bank need to make for Loss Assets?
How much provisioning does a bank need to make for Loss Assets?
Signup and view all the answers
What is the total provision amount for bad debts by the bank?
What is the total provision amount for bad debts by the bank?
Signup and view all the answers
Which factors are considered by RBI while making decisions regarding Prompt Corrective Action (PCA)?
Which factors are considered by RBI while making decisions regarding Prompt Corrective Action (PCA)?
Signup and view all the answers
When does a bank need to make accelerated provisioning?
When does a bank need to make accelerated provisioning?
Signup and view all the answers
On what basis should asset classification of accounts under a consortium be decided?
On what basis should asset classification of accounts under a consortium be decided?
Signup and view all the answers
Study Notes
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.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Related Documents
Description
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.
