Policy ID: PCI/POL/15/2026-27 • Version 1.0 Owner: CFO / Credit Monitoring • Approver: Board of Directors Sources: IRACP, STR • Review: Annual / regulatory change
Purpose and application
Loans and other credit assets; category, layer and accounting framework determine provisioning.
1. System classification:- Use contractual due dates and day-end overdue processing. Apply borrower-wise classification and current NPA rules. For covered ordinary term loans, use more than 90 days overdue; Base Layer’s 90-day transition was completed by 31 March 2026.
2. Income recognition:- Recognize performing-asset income under the applicable accounting rules. Stop accrual/reverse unrealized income on NPA as prescribed and recognize eligible NPA interest on realization. Do not upgrade through token payments, fresh lending or circular transfers.
3. Provisioning:- Classify standard, substandard, doubtful and loss assets and calculate the applicable minimum provisions. Apply the layer-specific matrix in Annex B and impairment/Ind AS reconciliation where relevant. Security must be realizable, current and independently supported.
4. Upgradation and restructuring:- Upgrade an NPA only after the prescribed conditions, including full clearance of principal/interest arrears where applicable. Restructuring shall follow the applicable stressed-asset Directions and cannot conceal deterioration. Record all approval and repayment evidence.
5. Monthly close and assurance:- Reconcile DPD/NPA lists to the loan ledger, GL and regulatory returns monthly. CFO shall certify provisions and report overrides. Audit shall test classifications; technical write-off or waiver requires the separate Write Off Policy.
Source codes are linked to the Reference Register. Read with the common implementation controls and relevant annexes. Applicable law and RBI Directions prevail.