There was one question yesterday. Banks substandard loan is 140lacs. Collateral Security 12 lacs.

There was one question yesterday. Banks substandard loan is 140lacs. Collateral Security 12 lacs. What will be the provision? 1.30 Cr 1.20 Cr 3.14 Cr 4.28 Cr

 

For secured substandard asset provision is 15%For us secured 25%For 12 lacs secured (12*15)/100=1.8 lacsFor remaining(128*25)/100=32 lacsTotal = 1.8+32=33.8 lacs

 

If an asset is covered by cgtmse then there is no need for provision.Is there any guarantee in the problem

 

Are Bai kl have kosish ki but ans tak ni pahunch paye sayad iibf me koi alag se norms bnaye ho to keh ni saktein..

 

one option was 21 cr and that is correct answer, because collator means that is secured substandard loan, so we have to make 15% provision of it i.e. 140*15%= 21 cr

 

60% ecgc means provision aur kam hoga tab 12.8 lacs hi aana

 

two types of question was there, in other question this funda is using

 

if security is less than 10% then 100% provisioning

 

140 ka 25% means 35 crEcgc cover 60%Means provision 35 cr 40%14crIs Wright ans As per current provisions in Basel 3 updates on iibf

 

Question wrong....Will we get 1 mark addition for us