Home › IBPS Clerk › Banking Awareness › NPA & Recovery › An unsecured substandard exposure attracts a tot…
An unsecured substandard exposure attracts a total provision of:
A15 per cent
B25 per cent
C35 per cent
D45 per cent
Answer & Solution
Correct answer: B. 25 per cent
1. The base provision on a substandard asset is 15 per cent.
2. An unsecured one carries an extra 10 per cent.
3. Together that comes to 25 per cent.
_Source: RBI Master Circular, Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances_
Related questions
An NPA of five crore rupees and above needs a stock audit:A bank may spread the provision for a detected fraud over up to:A state government guaranteed advance turns NPA after dues run past:A central government guaranteed advance turns NPA only when the guarantee is:Provisions on standard assets are not counted while arriving at:The standard asset provision on commercial real estate is:The standard asset provision on farm credit and housing loans is:Loss assets that remain on the books must be provided for at: