Income Recognition, Asset Classification & Provisioning Norms

Income should be recognized on accrual basis only in performing assets i.e. standard assets.
For Non-performing Asset (NPA) interest should be taken into Income account on actual recovery basis and not accrual basis.
When a particular loan given to a borrower becomes NPA then all other credits to the borrower will be treated as NPA.
The interest that is recovered partially on the NPA will be taken into the income account.
Security/net worth of borrower/guarantor will not be considered while qualifying a loan account as NPA.
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[@adithi4765]

Really liked the way you explained this concept, clarity of voice ,clarity of concept ….just kudos✨

[@kritika1315]

Nowhere could I find this topic covered with such clarity. 💯

[@DevTechFinance]

Thank you. Really means alot.

[@vaishalivashishtha5681]

Thanks....Very first 2 lines of yours clarified something which are trying to find whole day. 👍 Keep it up. Very precisely explained. It would be great if u can tell me the circular / source for NPA recovery accounting on cash basis. Kindly tell

[@vajindersingh1131]

Hello mam.. you made clear the whole topic in few minutes.. please recommend some imp topics on PNB SO credit manager

[@akulamanish7761]

Soon you will achieve 1 million subscribers

[@DevTechFinance]

Thank you 🙂

[@sowmyaganapathiraman4820]

Great and simple conceptual explanation. Keep doing the great work mam..from a CA..

[@DevTechFinance]

Thanks a lot Soumya! Glad that you appreciated it.

[@nithinkuruvilla2954]

Mam how the income is going to recoganize for a home loan having 30 years tenure. Banks will book the whole income during disbursement itself or they are booking year on year??

[@amitpandey708]

Very well explained....thanks

[@DevTechFinance]

Glad that it was helpful. Thank You.

[@sonamlandol5880]

It was so clear...you explained so well....thank you mam .....from a banker

[@DevTechFinance]

Thank you....It really motivates to work.

[@DevTechFinance]

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[@ranjitpatra7985]

Thanks man excellent way of conceptually clarity

[@DevTechFinance]

Glad it helped. Thanks for commenting. Kindly keep up the support on channel.

[@siddhishreejalifestyle9467]

madam please update the information time to time

[@vaishalivashishtha5681]

Also I want to know....in NPA recovery if bank gets some debentures (redemption is after 4 yrs) or equity then, should it be recorded at the time of court order or at the time of redemption when we actually receive the money? Kindly reply

[@anuragkhatri8104]

Great Mam crisp and clear! Are you looking forward to make educational videos ?

[@DevTechFinance]

Yes. Thank You.

[@anuragkhatri8104]

Mam can u make specific course on upsc commerce and accountancy - paper Financial management ? I know from your channel that your object is finacial knowledge imparting general rather than any specific area , still if it is possible. Thank You .

[@DevTechFinance]

Most of the topics related to financial management is already covered through various playlist. Not specialized in upsc domain so dont have much idea...in any case if help would be required for any particular topic..you can ask..if possible within my knowledge i will surely explain.

[@anuragkhatri8104]

I can mail u syllabus so u can make videos on apt. Topic if you feel like or within your scope . Thank you for the cooperation and reply , will carry on watching your videos.👍🏻

[@Naveen-nn9hj]

As usual its best video

[@DevTechFinance]

Really motivating. Thanks a lot.

[@guruacademy6060]

Good

[@DevTechFinance]

Thanks

[@amalkrishna90]

Madam..in case of loss asset 100 % provisioning to be done on total loan amount or outstanding loan amount?

[@DevTechFinance]

Outstanding loan amount

[@pratiklakhotia5796]

Is this the 1st July, 2015 circular?

[@ninadkadam3861]

THANKS For Video

[@DevTechFinance]

Welcome. Keep up the support on channel.

[@pravinshimpi3412]

Thank You mam

[@DevTechFinance]

Thanks for commenting Pravin! Kindly keep up the support on channel.

[@bhanukaushikmanepalli8177]

❤

[@jeevanrajKtr]

❤️🔥

[@ShivaniSingh-yf5ms]

DSEU❤️❤️❤️

[@umaprabhakar676]

Too much repetition

[@DevTechFinance]

Thank you for feedback. I will improve.