Model: Provisions to be created From the following information, find out the amount of provisions required to be made in the profit and loss A/c of a commercial bank for the year ended on 31 March 2011:
- Packing credit outstanding from food processors is Rs.80,00,000 against which the bank holds securities worth Rs.20,00,000. Forty per cent of the above advance is covered by ECGC. The above advances have remained doubtful for more than 3 years.
- Other Advances:
|
Assets Classification: |
(Rs. in Lakhs) |
|
Standard |
5,000 |
|
Sub-standard |
4,200 |
|
Doubtful: |
|
|
For 1 Year |
1,200 |
|
For 2 Years |
800 |
|
For 3 Years |
600 |
|
For More Than 3 Years |
400 |
|
Loss Assets |
800 |