Sir, In the lecture i saw that the provision for Restructured loan is 5%(wether standard asset or NPA) for first two years, and thereafter it is 0.4%. But what if it is NPA after 2 years whether the provision for NAP's will apply or it will still remain as 0.4%.?
sudha reddy Moderator
NPA provision will apply
In case of restructured loan, after restructuring First two years - 5% After 2 years pass, analyse if its a Standard or NPA IF standard - 0.4% provision will be required If NPA - then NPA provisioning will apply Before 2 years only it turns into NPA then NPA provisioning is required