Home › IBPS Clerk › Banking Awareness › NPA & Recovery › A substandard infrastructure loan account attrac…
A substandard infrastructure loan account attracts a provision of:
A50 per cent
B60 per cent
C20 per cent
D40 per cent
Answer & Solution
Correct answer: C. 20 per cent
1. Infrastructure lending has escrow safeguards.
2. So it is treated more leniently than other unsecured cases.
3. It attracts 20 per cent instead of 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: