Banking Regulation & Policy Department Bangladesh Bank Head Office Dhaka. Loan Classification and Provisioning

Transcription

1 Banking Regulation & Policy Department Bangladesh Bank Head Office Dhaka Website: August 02, 2015 BRPD Circular 08 Date: Shraban 18, 1422 Chief Executives All Scheduled Banks in Bangladesh Dear Sir, Provisioning Please refer to the BRPD Circular 14 of 2012, 19 of 2012, 05 of 2013 & 16 of 2014 d September 23, 2012, December 27, 2012, M ay 29, 2013 & November 18, 2014 respectively attached CL formats on the captioned subject. For the purpose of meticulous compliance with the Banking Companies Act, 1991 (amended up to 2013) along with the view to strengthening banking supervision, few changes have been brought in the CL formats. Revised formats are attached herewith. The Enterprise Data Warehouse (EDW) template (T_PS_Q_LN_PROV) for loan classification provisioning has been changed uploaded on the Bangladesh Bank website accordingly. Banks are advised to report according to the amended CL formats along with the changed EDW template from September, 2015 quarter. All other instructions of the above circulars will remain unchanged. Enclo: 06 (Six) Yours sincerely, (Chowdhury Md. Feroz Bin Alam) General Manager Phone

2 CL-1 BRANCH SUMMARY OF LOAN CLASSIFICATION AND PROVISION AS OF.. (AMOUNT IN TAKA) SL. Categories of s Balance outsting Base for provision of Interest suspense on Unclassified() SS DF B/L of actual Stard SS DF B/L Provision Provision (stard) required 1 Continuous (CL-2) 2 Dem (CL-3) 3 Fixed Term loan (CL-4) II) Consumer Financing (Other than HF & LP) III) Housing Finance (HF) IV) s for professionals to set up business (LP) V) s to BHs/MBs/SDs VI) Others than SMEF, CF, HF, LP, BHs/ MBs,/SDs Sub-total of I, II, III, IV, V & VI 4 Short term Agri. Microcredit (CL-5) I) Short Term Agri. II) Microcredit Sub-total of I & II Sub-total ( ) Staff Gr Off-Balance Sheet Exposure CHECK LIST Rate of Provision : Form of Page (s) Form of Page (s) s to Short Consumer financing BHs/MBs/ All CL-2 CL-4 Particulars Term Agri. Other than HF,LP HF LP SMEF SDs other CL-3 CL-5 Stard 2.5% 5% 2% 2% 0.25% 2% 1% - 5% 2% 2% 0.25% 2% 1% NB: CF=CONSUMER FINANCING, HF=HOUSING FINANCE, LP=LOANS FOR SS 5% 20% 20% 20% 20% 20% 20% PROFESSIONALS TO SET UP BUSINESS, =SPECIAL MENTION ACCOUNT, DF 5% 50% 50% 50% 50% 50% 50% SS=SUBSTANDARD, DF=DOUBTFUL, B/L=BAD/LOSS, BHs/ MBs,/SDs= LOANS TO BROKERAGE HOUSES/MERCHANT BANKS/STOCK DEALERS. DEFAULTED=AS PER 5(GaGa) OF THE BANKING COMPANIES ACT, B/L 100% 100% 100% 100% 100% 100% 100%

3 CL-2 RETURNS FOR CLASSIFICATION OF CONTINUOUS LOANS AS OF.. Name of borrower Nature of s Advances & last renewal [RNL(1/2/../n)] & last rescheduling sanctioned, renewed, rescheduled Balance Outsting as of reference Date of Expiry arrears (in months) (Ref. Date- 8) Preliminary status of Objective Criteria ( in Taka) Qualitative Judgement Status Page Final Basis for Unclassified () Stard Substard outsting Cumulative interest suspense as of reference (Stard) (If any) Value of (to nearest (15-21) Sub-stard ( ) Base for Provision for ( ) ( ) Remarks

4 CL-3 RETURNS FOR CLASSIFICATION OF DEMAND LOANS AS OF.. Page Name of borrower Nature of s Advances & last rescheduling Disbursed, rescheduled Balance Outsting as of reference Claim arrears (in months) (Ref. Date 8) Preliminary status of Objective Criteria ( in Taka) Qualitative Judgement Final Status Basis for Unclassified () Stard Substard outsting Cumulative interest suspense as of reference (Stard) (If any) Value of (to nearest (15-21) Sub-stard ( ) Base for Provision for ( ) ( ) Remarks

5 Name of borrower CL-4 RETURNS FOR CLASSIFICATION OF FIXED TERM LOANS AS OF.. Page Nature of facilities last rescheduling Principal, Rescheduled Balance Outsting as of reference Size Installment Frequency Date of first Repayment due Repayment due (Ref. col.10)+col.9 (in months) paid since sanctioning /Last rescheduling Time equivalent of amount paid (in months) Arrears (in months) (col.11- col.13) ( in Taka) Preliminary status of Objective Criteria Qualitative Judgement Final Status Basis for Unclassified () Stard Substard outsting Cumulative interest suspense as of reference (Stard) (If any) Value of (to nearest (20-26) Base for Provision for Sub-stard ( ) ( ) ( ) Remarks Note : 9 = Installment Frequency in months 13 = ( 12 X 9) 8

6 CL-5 RETURNS FOR CLASSIFICATION OF SHORT TERM AGRICULTURAL CREDIT AND MICRO CREDIT AS OF.. Page I. Short Term Agri. II. Microcredit ( in Taka) & last rescheduling Principal, Rescheduled Due arrears (in months) (Ref. Date 5) Unclassified Balance Outsting Interest suspense Value of (to nearest Substard (if any) Substard ( ) Base for provision for ( ) ( )

7 CL-1 OBU SUMMARY OF LOAN CLASSIFICATION AND PROVISION AS OF.. (AMOUNT IN TAKA) SL. Categories of s Balance outsting Base for provision of Interest suspense on Unclassified() SS DF B/L of actual Stard SS DF B/L Provision Provision (star required d) (if any) 1 Continuous (CL-2) 2 Dem (CL-3) 3 Fixed Term loan (CL-4) II) Consumer Financing (Other than HF & LP) III) Housing Finance (HF) IV) s for professionals to set up business (LP) V) s to BHs/MBs/SDs VI) Others than SMEF, CF, HF, LP, BHs/ MBs,/SDs Sub-total of I, II, III, IV, V & VI 4 Short term Agri. Microcredit (CL-5) I) Short Term Agri. II) Microcredit Sub-total of I & II Sub-total ( ) Staff Gr Off-Balance Sheet Exposure CHECK LIST Rate of Provision : Form of Page (s) Form of Page (s) s to Short Consumer financing BHs/MBs/ All CL-2 CL-4 Particulars Term Agri. Other than HF,LP HF LP SMEF SDs other CL-3 CL-5 Stard 2.5% 5% 2% 2% 0.25% 2% 1% - 5% 2% 2% 0.25% 2% 1% NB: CF=CONSUMER FINANCING, HF=HOUSING FINANCE, LP=LOANS FOR SS 5% 20% 20% 20% 20% 20% 20% PROFESSIONALS TO SET UP BUSINESS, =SPECIAL MENTION ACCOUNT, DF 5% 50% 50% 50% 50% 50% 50% SS=SUBSTANDARD, DF=DOUBTFUL, B/L=BAD/LOSS, BHs/ MBs,/SDs= LOANS TO BROKERAGE HOUSES/MERCHANT BANKS/STOCK DEALERS. DEFAULTED=AS PER 5(GaGa) OF THE BANKING COMPANIES ACT, B/L 100% 100% 100% 100% 100% 100% 100%