Valuation of Security: With a view to bringing down divergence arising out of difference in assessment of the value of security, in cases of NPAs with balance of Rs. ![]() The amount outstanding in excess of the guaranteed portion should be provided for as per the extant guidelines on provisioning for nonperforming advances Period for which the advance has been considered as doubtful ![]() In case the advance covered by CGTSI guarantee becomes nonperforming, no provision need be made towards the guaranteed portion. (ii) In regard to the secured portion, provision may be made on the following basis, at the rates ranging from 25% to 100% of secured portion depending upon the period for which the asset has remained doubtful. DICGC/ECGC cover is also taken into account (this aspect is discussed in detail later in this Chapter). Auditor should verify whether that the security is considered based on the latest information available with the bank. In doing so, the realisable value of the security available, to which the bank has a valid recourse, should be determined on a realistic basis. (i) Full provision to the extent of the unsecured portion should be made. The provisioning for doubtful assets under loans and advances is as under:
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