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Provision for Restructured loan

Auditing

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%.?

Sakthi Praveen

CA Inter

★ 2K+

21-Jul-20 18:43

368

Answers (3)

NPA provision will apply

Sudha Reddy

CA Final

★ 20K+

21-Jul-20 23:31

What about if it turns into NPA in the first 2 years whether NPA provisions or 5 % mam?

Thread Starter

Sakthi Praveen

CA Inter

★ 2K+

22-Jul-20 14:22

Sudha Reddy

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

Sudha Reddy

CA Final

★ 20K+

22-Jul-20 14:52