|1.Provisioning policy for loans to JLG
||Overdue for less than 8 weeks
||Overdue for more than 8 weeks upto 25 weeks
||Overdue for more than 25 weeks
The above mentioned provision for standard assets is linked to Portfolio at Risk (PAR) as shown below
|Portfolio at Risk
||Provisioning Percentage (% of Standard Assets)
|0 – 1%
|Above 1% to 1.5%
|Above 1.5% to 2%
Provision on standard assets has been made in line with the NBFC-ND-SI Prudential Norms
The overall provision for portfolio loans determined as per the above mentioned provisioning policy is subject to the provision prescribed in the NBFC-MFI Directions. These Directions require the total provision for portfolio loans to be higher of (a) 1% of the outstanding loan portfolio or (b) 50% of the aggregate loan installments which are overdue for more than 90 days and less than 180 days and 100% of the aggregate loan installments which are overdue for 180 days or more.
Such additional provision created in order to comply with the NBFC-MFI Directions is classified and disclosed in the Balance Sheet along with the contingent provision for standard assets.
(2) Loans and advances other than loans to JLG are provided for at the higher of management estimates and provision required as per the NBFC-ND-SI prudential norms.
(3) Provision on securitized / managed portfolio is made as per the Company’s provisioning policy for portfolio loans mentioned in (i) above net of losses, if any and subject to the maximum guarantee given in respect of these arrangements.
(4) All overdue loans, where the tenure of the loan is completed and in the opinion of the management any amount is not recoverable, are written off.