chapter 10 - npa functionality1

8/10/2019 Chapter 10 - NPA Functionality1

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NPA FUNCTIONALITYIN B@NCS 24


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RISK GRADES

RISK GRADE DESCRIPTION

00 STANDARD

01 STANDARD TEMP. IRREGULAR

02 STANDARD PROBLEM LOAN

03 NOT IN USE

04 SUBSTANDARD

05 DOUBTFUL

LESS THAN 1 YEAR06 DOUBTFUL 1 TO 3 YEARS

07 DOUBTFUL MORE THAN 3 YEARS

08 LOSS ASSETS


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NPA TRACKING IN THE SYSTEM

1. EOD ProcessIdentification of Accounts satisfying

the NPA conditions

2. Changing of Risk Grade of account by the system

based on condition satisfied and action attached to the

product

3. Updation of New Bad Debt Indicator only

4. Updation of Old Bad Debt Indicator only during EOYprocess.


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IRAC CODES

NEW BAD DEBT INDICATOR

1. System Generated

2. Temporary Change only

3. Manual updation possible

OLD BAD DEBT INDICATOR

1. Updated by system during year end operations

2. Can be manually updated by user

3. Interest Application in the account stops on the

updation of Old Bad Debt Indicator only


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AMEND / ENQUIRE NPA STATUS

(CC / OD & TL / DL)

Menu Option

- Common Processing

- Overdue / NPA

- Amend / Enquire NPA StatusCC / OD

- Amend / Enquire NPA StatusTL / DL


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Input Account Number


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Description of New Bad

Debt Indicator


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SHORT ENQUIRY


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Transaction Enquiry for Changes

in Old Bad Debt Indicator


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NPA ENQUIRY

Risk Grade Enquiry NPA Status Enquiry

-Changes in IRAC Status of a/c -Amount of arrears

-Date & Time of Change -No. of days in arrears

-Cond. Number -No. of days without

renewal

-Risk Grade & Description

-No. of days in current risk

grade

-No. of days without Stock

Statement

-Security Erosion


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Risk Grade Enquiry


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NPA Status Enquiry


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GRANTING OF HOLIDAYS FOR

ASSET CLASSIFICATION

-User has to specify the Arrear Condition Number for

which NPA Tracking is to be suspended

-If 999999 is input in the Arrear Condition field, tracking

will be suspended for all the conditions

-User will also specify when the NPA tracking is to start for

the account


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MENU PATH

-Common Processing

- Overdue / NPA

- Granting Holiday for Asset Classification (DL / TL)

- Granting Holiday for Asset Classification (CC / OD)


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INCA / UIPY

-The unpaid interest portion is segregated by thesystem into two partsUIPY & INCA

-Unpaid interest of previous year is shown under

UIPY bucket and that of current year under INCA

bucket.

-Figures in UIPY and INCA buckets can be viewed

through Short Enquiry option for both TL / DL and

CC / OD

-The updation takes place only when the Old Bad

Debt Indicator field is changed to 4or above.


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INTEREST APPLICATION IN NPA

ACCOUNTS

NPA Process Indicator (At Product Level)

0 - Only accrual at account level and no interest application

1 - Continue to apply interest in the account


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PROVISIONING

SECURED UNSECURED

BASED ON % STIPULATED

WHILE DEFINING RISK GRADES


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CALCULATION OF PROVISION

Provision Amount= ( % for unsecured portion) x

(Loan BalanceINCAUIPY

ClaimsValue of available security)+

(% for secured portion) x (Value of

available security)


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UPDATION OF PROVISION AMOUNT

DURING EOD AFTER CHANGING

OLD BAD DEBT INDICATOR

chapter 10 - npa functionality1

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