LOAN CLASSIFICATION AND PROVISIONING. REF: BRPD CIRCULAR NO. 16 DATED 18.11.2014.

Please refer to BRPD CIRCULAR NO. 14 DATED 23.09.2012 on the captioned subject.

With a view to encouraging participation of the banks in disbursing agricultural and micro-credits, the above circular has been reviewed and following amendments have been made:

Section 4(c) of the aforesaid circular will be replaced as under:

“(c) Provision for Short-term Agricultural and Micro-Credits:

(1) All unclassified Credits (irregular and regular)     : 2.5%

(2) Classified as ‘Sub-standard’ and ‘Doubtful’          : 5%

(3) Classified as ‘Bad/Loss’                                          : 100%.”

This circular shall be effective immediately.

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