NPA FUNCTIONALITY

IN B@NCS 24

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 YEAR

06

DOUBTFUL 1 TO 3 YEARS

07

DOUBTFUL MORE THAN 3 YEARS

08

LOSS ASSETS

NPA TRACKING IN THE SYSTEM

1. EOD Process Identification 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 EOY
process.

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

AMEND / ENQUIRE NPA STATUS

(CC / OD & TL / DL)
Menu Option
- Common Processing
- Overdue / NPA

- Amend / Enquire NPA Status CC / OD

- Amend / Enquire NPA Status TL / DL

Input Account Number

Description of New Bad

Debt Indicator

SHORT ENQUIRY

Transaction Enquiry for Changes

in Old Bad Debt Indicator

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

Risk Grade Enquiry

NPA Status Enquiry

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

MENU PATH
-Common Processing
- Overdue / NPA
- Granting Holiday for Asset Classification (DL / TL)
- Granting Holiday for Asset Classification (CC / OD)

INCA / UIPY
-The unpaid interest portion is segregated by the
system into two parts UIPY & 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 4 or above.

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

PROVISIONING

SECURED

UNSECURED

BASED ON % STIPULATED
WHILE DEFINING RISK GRADES

CALCULATION OF PROVISION
Provision Amount = ( % for unsecured portion) x
(Loan Balance INCA UIPY
Claims Value of available security)
+
(% for secured portion) x (Value of
available security)

UPDATION OF PROVISION AMOUNT

DURING EOD AFTER CHANGING
OLD BAD DEBT INDICATOR