Classification:
Classification
means giving each and every loan case a status like UC, SMA, SS, DF, BL through
verification of their transaction and repayment
performance on a particular date i.e. reference date. As per BRPD
Circulars no#14 dated 23.09.2012 and BRPD Circulars #19 dated 27.12.2012 Loan classified as follows:
|
CL Status
|
Overdue Period for Continuous & Demand and Fixed Term
Loans >Tk. 10.00 Lac
|
Overdue Period Fixed Term Loans ≤ Tk. 10.00 Lac
|
Overdue Period for
Agricultural & Micro Credit
|
|
SMA
|
2
Months to below 3 months
|
2
Months to below 6 months
|
|
|
SS
|
3
Months to below 6 months
|
6
Months to below 9 months
|
Over
12 months to 36 months
|
|
DF
|
6
Months to below 9 months
|
9
Months to below 12 months
|
Over
36 months to 60 months
|
|
BL
|
9
months & above
|
12
months & above
|
Over
60 months & above
|
Provisions:
Provisioning means setting aside of fund from
current year profit to meet-up future loan losses. It is a precaution measures
against the possibility of failure of the borrower As per BRPD Circulars
no#14 dated 23.09.2012 and BRPD Circulars no#05 dated 29.05.2013 Provision has to be kept against all the loans
& advances as follows:
Rate of provision (which will be charged on Base for Provision)
|
Particulars
|
Standard
|
SMA
|
SS
|
DF
|
BL
|
|
|
Consumer
Financing
|
Other
than HF and LP
|
5%
|
5%
|
20%
|
50%
|
100%
|
|
Housing
Financing and Loan for Professionals
|
2%
|
2%
|
||||
|
Loan
to Brokerage House, Merchant Bank and Stock Dealers
|
2%
|
2%
|
||||
|
SME
Financing
|
0.25%
|
0.25%
|
||||
|
All
Other Credit
|
1%
|
1%
|
||||
|
Short-term
Agricultural and micro credit
|
5%
|
|||||
|
Off
Balance Sheet Exposure
|
1%
|
|||||
Base for Provision:
For eligible
collaterals of the following types, provision will be maintained on the
outstanding balance of the classified loans less the amount of Interest
Suspense and the value of eligible collateral:
a.
Deposit with the same bank under lien against the loan,
b.
Government bond/savings certificate under lien,
c.
Guarantee given by Government or Bangladesh Bank.
For all other
eligible collaterals, the provision will be maintained on the balance
calculated as the greater of the following two amounts:
i. outstanding balance of the
classified loan less the amount of Interest Suspense and the value of eligible
collateral; and
ii. 15% of the outstanding balance of the loan.
Value Eligible
Collateral:
As per BRPD Circulars
no#14 dated 23.09.2012 value of 'Eligible Collateral' as follows:
-100% of deposit
under lien against the loan
-100% of the value of
government bond/savings certificate under lien
-100% of the value of
guarantee given by Government or Bangladesh Bank
-100% of the market
value of gold or gold ornaments pledged with the bank.
- 50% of the market
value of easily marketable commodities kept under
control of the bank
- Maximum 50% of the
market value of land and building mortgaged with the bank
- 50% of the average
market value for last 06 months or 50% of the face value, whichever is less, of the traded in stock exchange.
Rescheduling:
Rescheduling means extending of credit period
to facilitate and revive existing un-willful sick borrower and recover the
stuck up loan. As per BRPD Circulars#15 date September 23,
2012, And BRPD Circulars#06 date
29.05.2013, an application for rescheduling will be taken into
consideration upon receiving dawn payment of at the following rate:
For
Continuous & Demand Loans advance converted to Fixed term Loans:-
|
Frequency
|
Outstanding
|
Rate Down payment required
|
|
1st
Time
|
Upto
Tk. 1.00 Crore
|
15%
of total outstanding
|
|
Above
Tk. 1.00 Crore to Tk. 5.00 Crore
|
10%
of total outstanding but not less than Tk. 15.00 lac
|
|
|
Above
Tk. 5.00 Crore
|
5%
of total outstanding but not less than Tk. 50.00 lac
|
|
|
Note:
For 2nd & 3rd time rescheduling , the rate of Down
Payment will be follow the rate of Down Payment of Fixed Term Loan since the
loan account is converted To fixed
term loan at the time of 1st Rescheduling
|
||
For
Fixed Term Loans and Short term Agri. & Micro Credit
|
Frequency
|
Rate Down payment required
|
|
1st
time
|
15%
of the overdue amount or, 10% of total
outstanding, whichever is less
|
|
2nd
time
|
30%
of the overdue amount or, 20% of total
outstanding, whichever is less
|
|
3rd
time
|
50%
of the overdue amount or, 30% of total
outstanding, whichever is less
|
N;B: If the loan becomes default
after third rescheduling, the borrower will be treated as a habitual loan
defaulter and the bank shall not consider for further loan rescheduling.
In following case
bank may rescheduling of loan account without required down payment:
§ Due to stock lot of
export-oriented garments industry or knit garments factory
§ Due to delay of
government subsidy receipt of fertilizer importers loan account
Maximum
Time limit for rescheduling (Time limit Starts from the date of rescheduling)
|
Nature of Credit
|
Frequency
|
SS A/c
|
DF A/c
|
BL A/c
|
|
Continuous Loan
|
1st
time
|
18
Months
|
12
Months
|
12
Months
|
|
2nd
time
|
12
Months
|
9
Months
|
9
Months
|
|
|
3rd
time
|
6
Months
|
6
Months
|
6
Months
|
|
|
|
||||
|
Demand Loan
|
1st
time
|
12
Months
|
9
Months
|
9
Months
|
|
2nd
time
|
9
Months
|
6
Months
|
6
Months
|
|
|
3rd
time
|
6
Months
|
3
Months
|
3
Months
|
|
|
|
||||
|
Fixed Term Loan
|
1st
time
|
36
Months
|
24
Months
|
24
Months
|
|
2nd
time
|
24
Months
|
18
Months
|
18
Months
|
|
|
3rd
time
|
12
Months
|
12
Months
|
12
Months
|
|
|
|
||||
|
Short
term Agricultural and Micro Credit
|
1st
time
|
Not exceed 2 years
|
||
|
2nd
time
|
1
year
|
|||
|
3rd
time
|
6
months
|
|||
Note: If the loan rescheduled after the expiry
date, the above time limit will be applicable from the date or scheduling
Availing of new or enhance facility:
After
rescheduling a credit facility the borrower can avail a new loan or enhanced
the existing credit facilities by recovering 15% (In
case of exporter it may be 7.50%) of outstanding rescheduling loan
amount excluding the down payment.
