Bank of baroda

BANK OF BARODA
Classification of Assets
Advances are net of interest suspense, amounts received and held in suit-filed sundry deposits, claims received and
provisions made for non-performing advances in accordance with the prudential norms prescribed by RBI and revised
from time to time. In respect of advances made in overseas branches, advances are classified in accordance with stricter
of the prudential norms prescribed by the RBI or local laws of the host country in which advances are made, wherever
applicable.
Advances are classified as standard, sub-standard, doubtful or loss assets. We make provisions for losses made on sub-
standard, doubtful and loss assets as per the prudential norms of the RBI set forth below :
Sub-Standard Assets: 
A general provison of 10.0 % on the total outstanding. The unsecured exposures that are
identified as sub-standard attract an additional provison of 10.0%, i.e., a total of 20.0 % on the outstanding balance.
Doubtful Assets :
A 100.0 % provsion/write-off of the unsecured portion of advances that are not covered by
realizable value of the security. In cases where there is a secured portion of the asset, depending upon the period
for which the asset remains doubtful, a 20.0% to 100.0% provision is required to be made against the secured
asset as follows:
Up to one year: 20.0% provision;
One to three years: 30.0% provision; and
More than three years:
In respect of outstanding stock of non-performing assets as on March 31, 2004: 50% provision, which
become 60% with effect from March 31, 2005, and will be 75% with effect from March 31, 2006 and
100% with effect from March 31, 2007.
In respect of assets that have been doubtful for over three years on or after April 1, 2004, the provsion
has been raised to 100% with effect from March 31, 2005.
Loss Assets :
100 % provision.
A provision of 0.25 % is made on standard advances (including in respect of investments by way of debentures/bonds in
the nature of advances), and is included under the head “Other Liabilities” as per RBI guidelines.
In respect of rescheduled/restructured accounts, provision is made for the sacrifice of interest measured in present value
terms as per Reserve Bank of India guidelines. The said provision is included under the head “Other Liabilities”.