 

- Doubtful — IIT

All NPAs after completion of 48 months from date of categorization as an NPA will
slip to Doubtful-III category.

 

Loss asset

A loss asset is one where the loss has been identified by the bank, internal auditor,
external auditors or the RBI inspectors, but the amount has not been written off wholly.
In other words, such an asset is considered uncollectible with little salvage or recovery
value.

 

Accounts where there is erosion
in the value of securities/frauds
committed by the borrowers

 

In respect of accounts where there are potential threats for recovery on account of erosion
in the value of security or non-availability of security and existence of other factors such
as frauds committed by borrowers it will not be prudent that such accounts should go
through various stages of asset classification. In cases of such serious credit impairment,
the asset should be straightaway classified as doubtful or loss asset as appropriate:

1. Erosion in the value of security can be reckoned as significant when the realizable
value of the security is less than 50 per cent of the value assessed by the bank or accepted
by RBI at the time of last inspection, as the case may be. Such NPAs may be straightaway
classified under doubtful category.

2. If the realizable value of the security, as assessed by the bank/ approved valuers/ RBI
is less than 10 per cent of the outstanding in the borrowal accounts, the existence of
security should be ignored and the asset should be straightaway classified as loss asset.

 

The following tables provide a summary of our Bank’s gross loan assets as of the periods indicated, in accordance with RBI

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

classifications.
‘Asset Category As of December 31,
2019 2020
million)
Standard assets 33,458.89 38,231.91
Sub-standard assets 852.17 82.95
Doubtful assets 103.40 213.91
Loss assets : 2.27
Total 34,414.46 38,531.04
‘Asset Category As of March 31,
2018 2019 2020
million)

Standard assets 15,394.50 26,910.08 35,251.42
Sub-standard assets 509.90 323.02 923.14
Doubtful assets 55.79 173.19 87.10
Loss assets = = 2.26
Total 15,960.19 27,406.29 36,263.92

 

 

 

 

The following tables set forth our Bank’s provisions for credit losses including possible credit losses at the dates indicated:

 

 

 

 

 

 

 

 

 

 

‘Asset Category As of December 31,
2019 2020

(million, except percentages)
i. Total of Provision for NPA and Floating provision 805.44 708.41
ii._Gross Advances 34,414.46 38,531.04
iii, Gross NPA 955.57 299.13
iv. Provision held as percentage of Gross Advances [i/ii] 2.34% 1.84%
v. Provision coverage ratio (including technical write-offs and floating 34.20% 89.58%

provisions to an extent utilized)”

 

(@___ Provision held as a percentage of Gross Advances.
(2) Our Bank has a provision of & 1,407.10 million as on December 31, 2020 on account of COVID-19 and has not been considered in table above.

 

 

 

 

 

 

 

 

 

 

 

 

‘Asset Category As of March 31,
2018 2019 2020
(million, except percentages)
i. Total of Provision for NPA and Floating provision 273.41 610.44 944.48
ii, Gross Advances 15,960.19 27,406.29 36,263.92
iii, Gross NPA 565.69 496.21 1,012.50
iv. Provision held as percentage of Gross Advances [vii] 1.71% 2.23% 2.60%
v. Provision coverage ratio (including technical write-offs and 48.33% 75.80% 84.71%
floating provisions to an extent utilized) ”

 

Notes:

(1) Provision held as a percentage of Gross Advances.

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