Loan Classification and Provisioning as per BRPD Circular No.

14, September 23, 2012

A Continuous loan, Demand loan or a Term Loan which will remain overdue for a period of 02 (two) months or more, will be put into
Account(SMA)

Loans except Short-term Agricultural & Micro-Credit in the "Special Mention Account" and Sub-Standard will not be treated as defaulte

Continuous Loan
If it is past due/overdue for 03 (three) months or beyond but less than 06 (six) months
If it is past due/overdue for 06 (six) months or beyond but less than 09 (nine) months
If it is past due/overdue for 09 (nine) months or beyond

Demand Loan
If it remains past due/overdue for 03 (three) months or beyond but not over 06 (six) months from the date of expiry or claim by the
bank or from the date of creation of forced loan
If it remains past due/overdue for 06 (six) months or beyond but not over 09 (nine) months from the date of expiry or claim by the bank
or from the date of creation of forced loan

If it remains past due/overdue for 09 (nine) months or beyond from the date of expiry or claim by the bank
or from the date of creation of forced loan

Term Loan Up to Tk. 10.00 lac

If the amount of past due installment is equal to or more than the amount of installment(s) due within 06
(six) months
If the amount of past due installment is equal to or more than the amount of installment(s) due within 09
(nine) months
If the amount of past due installment is equal to or more than the amount of installment(s) due within 12
(twelve) months

Term Loan More Than Tk. 10.00 Lac

If the amount of past due installment is equal to or more than the amount of installment(s) due within 03 (three) months
If the amount of past due installment is equal to or more than the amount of installment(s) due within 06 (six) months
If the amount of past due installment is equal to or more than the amount of installment(s) due within 09 (nine) months

The Short-term Agricultural and Micro-Credit will be considered irregular if not repaid within the due date as stipulated in the loan
irregular status continues, the credit will be classified as 'Substandard' after a period of 12 months, as 'Doubtful' after a period of 36 mo
after a period of 60 months from the stipulated due date as per the loan agreement

Provisioning

0.25% against all unclassified loans of Small and Medium Enterprise (SME) as defined by the SME & Special Programmes Departmen
from time to time and @ 1% against all unclassified loans (other than loans under Consumer Financing, Loans to Brokerage House, M
dealers etc., Special Mention Account as well as SME Financing.)

5% on the unclassified amount for Consumer Financing whereas it has to be maintained @ 2% on the unclassified amount for (i) Ho
Loans for Professionals to set up business under Consumer Financing Scheme
2% on the unclassified amount for Loans to Brokerage House, Merchant Banks, Stock dealers, etc
5% on the outstanding amount of loans kept in the 'Special Mention Account. (Clause Cancelled, Same to UC)

1% on the off-balance sheet exposures. (Provision will be on the total exposure and amount of cash margin or value of eligible collatera
while computing Offbalance sheet exposure.)
Banks will maintain provision at the following rates in respect of classified Continuous, Demand and Fixed Term Loans:
(1) Sub-standard : 20%
(2) Doubtful : 50%
(3) Bad/Loss : 100%
Agri Loan
(1) All credits except 'Bad/Loss' (i.e. 'Doubtful', 'Sub-standard', irregular and regular credit accounts) : 5%
(2) 'Bad/Loss' : 100%

Base for Provision

Base for Provision = Outstanding balance-Interest Suspense-Value of eligible collateral
RATE OF PROVISION
Consumer Financing

Short Term Agri

Other than HF
credit
& LP

Particulars

Unclassified

Classified

Standard
SMA
SS
DF

5%
5%
5%

5%
5%
20%
50%

HF

LP

Small
Enterprise
Financing

2%
5%
20%
50%

2%
5%
20%
50%

0.25%
0.25%
20%
50%

Classified
B/L
100%
100%
100%
100%
100%
HF= Housing Finance, LP= Loans for Professional to set up business, BHs/MBs/SDs= Loans to Broakerage Houses/
Merchant Banks/Stock Dealers

ember 23, 2012

more, will be put into the "Special Mention

e treated as defaulted loan

Sub Standard
Doubtful
Bad & Loss

piry or claim by the Sub Standard

or claim by the bank Doubtful

aim by the bank

due within 06

Bad & Loss

Sub Standard
Defaulted

due within 09

Doubtful

due within 12

Bad & Loss

Sub Standard

nths

Doubtful

Bad & Loss

ths

pulated in the loan agreement. If the said

er a period of 36 months and as 'Bad/Loss'

grammes Department of Bangladesh Bank

Brokerage House, Merchant Banks, Stock

ed amount for (i) Housing Finance and (ii)

e of eligible collateral will not be deducted

ans:

Loans to
BHs/MBs/SDs

All other crdit

2%
2%
20%
50%

1%
1%
20%
50%

100%

100%