Recovery Management - post mid term discussion chap 1 & 2

Which of the following is not an effect of rise in NPAs?

• Increase in NIM and NII
• Increase in provisions
• Increase in capital requirements
• Decrease in profits

Identify the areas of challenges the banks have to face due to inefficient recovery management practices.

• Capital adequacy and profitability
• Technology and profitability
• Inadequate human resources and capital adequacy
• Day to day operational difficulties and technological problems

In which of the following, the classification of NPA is made facility-wise and not borrower-wise

• PACS & FSS
• Central Govt guaranteed accounts
• State Govt Guaranteed Accounts
• staff members

Which of the following account becomes a sub-standard account following 90 days of non-repayment?

• Loan against government securities
• Short term crop loan
• Central Govt Guaranteed account
• Loan against fixed deposits

The balance O/s in a Loan account is Rs.75,000 and the realizable value of the primary security (no collateral) is Rs.5,000/-. On slipping down, the account is classified as

• Loss account
• Fraudulent account
• Sub-standard account
• DA 3

When a fraudulent account is identified,

• The bank must report to RBI and provide for 100% provision
• The bank must report to RBI and classify the asset as doubtful
• The bank need not report to RBI but can handle it within its jurisdiction
• The bank must report to RBI but need not provide for a full provision

The surplus of the provision under PCR vis-à-vis as required as per prudential norms should be segregated into an account styled as

• Counter Cyclical Buffer
• Additional Provisioning Buffer
• Dynamic Provisioning Buffer
• Floating Provisioning Buffer

What is the provisioning requirement for performing assets under direct agriculture and SMEs?

• 0.0025
• 0.004
• 0.01
• 0.0075

When an account becomes sub-standard how much provision has to be made for the unsecured portion of the loan?

• 0.25
• 0.4
• 0.6
• 1

Committee for Financial Systems was also known as

• Narasimhan Committee I
• P R Khanna Committee
• Narasimhan Committee II
• Verma Committee