For eligible collateral of the following types, provision will be maintained at the stated rates on the outstanding balance of the classified loans less the amount of interest suspense and the value of eligible collateral:
a) Deposit with the same bank under lien against the
loan b) government bonds/savings certificate under lien
c)
Guarantee
given by government of Bangladesh bank
For all other eligible collateral, the provision will
be maintained at the stated rates on the balance calculated as the greater of the
following two amounts-
a) Outstanding balance of the classified loan less the
amount of interest suspense and the value of eligible collateral; and
b) 15% of the outstanding balance of the loan
Eligible
securities
Following securities will be included as eligible securities
in determining base for provision:
a) 100% of deposit under lien against the loan
b) 100% of the value of government bonds/savings certificate
under lien
c) 100% of the value of guarantee given by government
or Bangladesh bank d) 100% of the value of gold or gold ornaments pledge with the
bank
e) 50% of the market value of easily marketable commodities
kept under control of the bank
f) Maximum 50% of the market value of land and building
mortgage with the bank
g) 50%of the average market value for last 06 months
or 50% of the
face value, which is less, of the shares traded in the
stock exchange.