Search

21 October, 2021

Qualitative Judgment

 

If   an y   u nc e rtai nt y   or   doubt   a ris es   in   res pe ct   of   r e cov er y   of   a n y   C ontinu ous   Lo an ,

Dem and Lo an  o r  Fix e d  Te rm  Lo an,  t he  s ame  will  h av e  to  b e  clas sifi ed  o n  the  b asis  o f qualit ativ e judgment be it classifiable or not on the basis of objective criteria.The concerned bank will classify on the basis of qualitative judgment and can declassify theloans if qualitative improvement does occur.But if an y loa n is cl assi fi ed b y t he In spe ction T eam o f Ba n glad es h Bank, th e s a me ca n bedeclassified with the approval of the Board of Directors of the bank. However, before placingsuch case to the Board, the CEO and concerned branch manager shall have to certify that theconditions for declassification have been fulfilled