alleryAn 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_
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