What are the rules for classification of Loans/Advances in Bangladesh as on 27.06.2017?

Answer:

1.  Any Continuous Loan if not repaid/renewed within the fixed expiry date for repayment or after Demand by the Bank will be treated as past due/overdue from the following day of the expiry date. This loan will be classified as Sub-standard if it remains past due/overdue for 3 months or beyond but less than 6 months, as `Doubtful' if for 6 months or beyond but less than 9 months and as `Bad-Debt' if for 9 months or beyond.

2.  Any Demand Loan if not repaid/rescheduled within the fixed expiry date for repayment or after Demand by the Bank will be treated as past due/overdue from the following day of the expiry date. This Loan will be classified as Sub-standard if it remains past due/overdue for 3 months or beyond but not over 6 months from the date of claim by the bank or from the date of creation of the forced loan; likewise the loan will be classified as "Doubtful' and Bad/loss if remains past due/overdue for 6 months or beyond but not over 9 months and for 9 months and beyond respectively.

In case of Term Loans more  than Tk.10.00 lacs ,

If the amount of `Past Due/Overdue Installment' is equal to or more than the amount of installment (s) due within 3 months, the entire loan will be classified as ``Sub-standard''.

a)   If the amount of 'defaulted installment' is equal to or more than the amount of installment (s) due within 6 months, the entire loan will be classified as ''Doubtful.

b) If the amount of 'defaulted installment' is equal to or more than the amount of installment (s) due within 9 months, the entire loan will be classified as ''Bad & Loss.''

In case of Term Loans amounting upto Tk.10. 00 lac ,

If the amount of `defaulted installment' is equal to or more than the amount of installment (s) due within 6 months, the entire loan will be classified as ``Sub-standard''.

a)   If the amount of 'defaulted installment' is equal to or more than the amount of installment (s) due within 9 months, the entire loan will be classified as ''Doubtful.

b)  If the amount of 'defaulted installment' is equal to or more than the amount of installment (s) due within 12 months, the entire loan will be classified as ''Bad & Loss.''