CAIIB BFM : UNIT 27 ASSET CLASSIFICATION AND NPA PROVISIONING

Case study1( 1-10)Total advances Rs 50000 cr, Gross NPA 10% and Net NPA 3% , based on this info answer the following:
1. What is the amount of gross NPA?
a. Rs 4000 cr
b. Rs 4500 cr
c. Rs 5000 Cr
d. Rs 5500 Cr

2. What is the amount of net NPA ?
a. Rs 1000 cr
b. Rs 1200 cr
c. Rs 1500 cr
d. Rs 1800 cr

3. What is the amount for provision for standard loans, if all the standard loan account represent general advance?
a. Rs 150 cr
b. Rs 160 cr
c. Rs 180 cr
d. Rs 200 cr

4. What is the provision on NPA accounts?
a. Rs 3000 cr
b. Rs 3500 cr
c. Rs 4500 cr
d. Rs 5000 cr

5. What is the total amount of provisions on total advances, including the standard accounts?
a. Rs 3500 cr
b. Rs 3680 cr
c. Rs 4000 cr
d. Rs 4200 Cr

6. What is the minimum amount of provision to be maintained to meet the PCR of 70 percent?
a. Rs 3500 cr
b. Rs 3680 cr
c. Rs 4000 cr
d. rs 4200 cr

7. What is the amount of provision for standard loans, if all the loan account represent direct advances to agricultural?
a. Rs 90 cr
b. Rs 112.5 cr
c. Rs 135 cr
d. Rs 180 cr

8. What is the amount of provision for standard loans, if all the standard loan account represent advances to SME sectors?
a. Rs  90 cr
b. Rs 112.5 cr
c. Rs 135 cr
d. Rs 180 cr

9. What is the amount of provision for standard loans, if all the standard loan account represent advances to CRE sectors?
a. rs 112.5 cr
b. Rs 180 cr
c. Rs 337.5 cr
d. Rs 450 cr

10. What is the amount of provision for standard loans, if all the standard loan account represent advances to CRE-RH sectors?
a. Rs 112.5 cr
b. Rs 180 cr
c. Rs 337.5 cr
d. Rs 450 cr

Ans- 1-c
2- c
3-

11. Loss assets attracts ....percent provision
a. 150
b. 125
c. 100
d. 50

Ans- c

12. Provision coverage ratio for the non performing assets is ..... percent
a. 50
b. 60
c. 70
d. 80
Ans- c

13. Asset in doubtful 1 category-Rs 500,000/-
Realization value of security - Rs 400,000/-
What will be the provision requirement?
a. Rs 500000/-
b. Rs 400000/-
c. Rs 180000/-
d. Rs 200000/-
Ans- d

14. For standard assets, the provision required is ......percent of the outstanding amount.
a. 0.10
b. 0.20
c. 0.40
d. 0.25
Ans- c

.........................

Case study 2(15-17)
The following data in respect of ABC bank for the profit and loss account ending 31 march 15 and 16 is given as on
31/03/2015 :
total advance- 6578122
gross amount of NPA - 145245
Net amount of NPA 91718

31/03/2016 :5669254
gross amount of NPA - 95650
Net amount of NPA 57173

15. What is the percentage increase or decrease in gross NPA of the bank on 31/03/2016 over corresponding Figures of 2015?
a. 52 percent inc
b. 52 percent dec
c. 34 percent increase
d. 34 percent decrease

Ans-a

16. The total amount of the provision as on 31/03/2016 will be
a. 32425
b. 53527
c. 139595
d. 40595
ans- b

17. Net NPA percent of the bank as on 31. 03. 2015
a. 1.01 percent
b. 1.40 percent
c. 2.02 percent
d. 2.81 percent

18. Data as on 31.03.2018
Account balance,A=90
security= 10
NPA date 31.10.2015
what is the provision against account A?
Ans- 84

19. Data as on 31.03.2018
Account balance,A=100
security= 20
NPA date 31.08.2017
what is the provision against account A?
Ans- 23

20. Data as on 31.03.2018
Account balance,A=80
security= 30
NPA date 31.07.2012
what is the provision against account A?
Ans- 80

21. Asset in doubtful category for 2 years-Rs 500,000/-
Realization value of security - Rs 300,000/-
What will be the provision requirement?
a. Rs 500000/-
b. Rs 320000/-
c. Rs 20000/-
d. Rs 175000/-
Ans- b

22. Full forms:
CRILC- Central repository of information on Large Credits
S4A- Scheme for sustainable structuring of Stressed assets
JLF- Joint Lending Forum
PCR- Provisioning Coverage Ratio
TEV- Techno Economic Viability
SMA- Special Mention Account
LLP- Limited Liability Partnership
NCLT-National Company Law Tribunal
IBC- Insolvency And Bankruptcy Code

23. ...... indicates the extent of funds a bank has kept aside to cover loan losses provisioning coverage ratio?
quick ratio
minimum capital ratio
Provisioning coverage ratio
Ans- Provisioning coverage ratio

24. What is npa norms agri short term loan
Ans- 2 crop season

25. Total limit of PCR?
Ans- 70 percent

26.Types of SMA?
Ans-3

27. Where PCR of the bank disclosed?
account note to balance sheet