abhishreshthaa
Abhijeet S
PRUDENTIAL NORMS
i) Securities with guarantees of the Central Government / State Governments are treated as performing investments, notwithstanding arrears of principal / interest payments. However, interest is not realized for more than 90 days is recognized as income only on cash basis. In case the State Government guarantee is invoked and not honoured within 90 days, such investments will be treated as Non performing investments.
ii) Securities not guaranteed by the Central Government / State Governments; where the Principal / Interest is due but not paid for a period of more than 90 days the items are treated as Non Performing Investments and provided for as per the RBI guidelines.
iii) In the case of debentures / bonds when principal / interest is in arrears, provision is made as in the case of advances.
iv) The depreciation / provision requirement in respect of non performing investments is not set off against the depreciation in respect of other performing investments.
i) Securities with guarantees of the Central Government / State Governments are treated as performing investments, notwithstanding arrears of principal / interest payments. However, interest is not realized for more than 90 days is recognized as income only on cash basis. In case the State Government guarantee is invoked and not honoured within 90 days, such investments will be treated as Non performing investments.
ii) Securities not guaranteed by the Central Government / State Governments; where the Principal / Interest is due but not paid for a period of more than 90 days the items are treated as Non Performing Investments and provided for as per the RBI guidelines.
iii) In the case of debentures / bonds when principal / interest is in arrears, provision is made as in the case of advances.
iv) The depreciation / provision requirement in respect of non performing investments is not set off against the depreciation in respect of other performing investments.