On 31st March, 2019, North Indian Bank Ltd. finds its non-performing advances classified as follows: in '000 Sub-standard Assets (Secured) 46400 Doubtful Assets : Upto one year (Secured) 12830 Doubtful Assets : one year
CS Professional · Banking - Law and Practice · PYQS · December 2020
On 31st March, 2019, North Indian Bank Ltd. finds its non-performing advances classified as follows: in '000 Sub-standard Assets (Secured) 46400 Doubtful Assets : Upto one year (Secured) 12830 Doubtful Assets : one year to three (Secured) 7820 Doubtful Assets : Above three years (Secured) 3290 Loss Assets 5175 Calculate the amount of provision to be made against the advances.
Answer & Explanation:
Calculation of the amount of provisions to be made against the advances: Amount (₹ in 000) % Required as provision Provision (₹ in 000) Sub Standard Assets (Secured) 46400 15 6960.00 Doubtful Assets: Upto One year (Secured) 12830 25 3207.50 Doubtful Assets: One year to three years (Secured) 7820 40 3128.00 Doubtful Assets: Above three years (Secured) 3290 100 3290.00 Loss Assets 5175 100 5175.00 Total Provision Required 75515 21760.50
Topics: Non-Performing Assets (NPA)
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