Prudential Norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances – Spread over of shortfall

RBI/2014–15/606 DBR.No.BP.BC.94/21.04.048/2014–15

May 21, 2015

Pru­den­tial Norms on Income Recog­ni­tion, Asset Clas­si­fi­ca­tion and Pro­vi­sion­ing per­tain­ing to Advances – Spread over of shortfall

Please refer to our cir­cu­lar DBOD.BP.BC.No.98/21.04.132/2013–14 dat­ed Feb­ru­ary 26, 2014 where­in para­graph 3.4 states that “As an incen­tive for ear­ly sale of NPAs, banks can spread over any short­fall, if the sale val­ue is low­er than the NBV, over a peri­od of two years. This facil­i­ty of spread­ing over the short­fall would how­ev­er be avail­able for NPAs sold up to March 31, 2015 and will be sub­ject to nec­es­sary dis­clo­sures in the Notes to Account in Annu­al Finan­cial State­ments of the banks.”

2. It has now been decid­ed to extend this dis­pen­sa­tion for assets sold on or after March 31, 2015 and up to March 31, 2016.

Yours faith­ful­ly,

(Sudar­shan Sen)
Chief Gen­er­al Manager-in-Charge