a) General Provision: Banks will be required to maintain General Provision in the following way :
(1) @ 0.25% against all unclassified loans of Small and Medium Enterprise (SME) as defined by the SME & Special Programmes Department of Bangladesh Bank from time to time and @ 1% against all unclassified loans (other than loans under Consumer Financing, Loans to Brokerage House,
Merchant Banks, Stock dealers etc., Special Mention Account as well as SME Financing.)
(2) @ 5% on the unclassified amount for Consumer Financing whereas it has to be maintained @ 2% on the unclassified amount for (i) Housing Finance and (ii) Loans for Professionals to set up business under Consumer Financing Scheme.
(3) @ 2% on the unclassified amount for Loans to Brokerage House, Merchant Banks, Stock dealers, etc.
(4) @ 5% on the outstanding amount of loans kept in the 'Special
Mention
Account'.
(5) @1% on the off-balance sheet exposures. (Provision will be on the total exposure and amount of cash margin or value of eligible collateral will not be deducted while computing Off- balance sheet exposure.)
b) Specific Provision: Banks will maintain provision at the following rates in respect of classified Continuous, Demand and Fixed Term Loans:
|
i. |
(1) Sub-standard |
: 20% |
|
ii. |
(2) Doubtful |
: 50% |
iii. (3) Bad/Loss : 100%
c) Provision for Short-term Agricultural and Micro-Credits:
(1) All credits except 'Bad/Loss' (i.e. 'Doubtful', 'Sub-standard',
irregular and regular credit accounts)
:
5%
(2) 'Bad/Loss'
: 100%
|
Type of classification |
Short term agri & micro credit |
Consumer financing |
SMEF |
Loan against share |
Others loan |
|||
|
|
Except HF &LP |
HF |
LP |
|||||
|
unclassified |
STD |
5% |
5% |
2% |
2% |
0.25% |
2% |
1% |
|
SMA |
|
5% |
5% |
5% |
0.25% |
2% |
1% |
|
|
classified |
SS |
5% |
20% |
20% |
20% |
0.20% |
20% |
20% |
|
DF |
5% |
50% |
50% |
50% |
50% |
50% |
50% |
|
|
BL |
100% |
100% |
100% |
100% |
100% |
100% |
100% |