Circulars/Notifications - Banking Supervision Department  
 BPRD Circular Letter No. 04
February 17, 2000  

All Banks/NBFIs,

Dear Sirs,

RESCHEDULING/RESTRUCTURING OF NON PERFORMING LOANS

Please refer to BPRD Circular Letter No.27 dated June 22, 1999 and subsequent modification issued vide BPRD Circular Letter No.2 dated January 29, 2000 on the captioned subject.

The State Bank has been receiving queries regarding Interpretation of the instructions contained in the above-mentioned Circular Letters. In this connection following clarifications are hereby issued:-

i. Banks/NBFIs will continue to provide for the rescheduled/restructured loans/advances for a period of one year (excluding grace period). However, while reporting to the CIB, such loans/advances may be shown as "rescheduled/restructured" instead of "defaults".

ii. All classified loans which have been rescheduled/restructured and the mandatory period of one year has not been elapsed since the date of their rescheduling/restructuring, will be covered under the aforesaid circular.

iii. For the purpose of fresh credit/advance allowed by a bank in the rescheduled/restructured accounts, whether disbursed in the same loan account as enhancement or a separate loan account, the whole amount of rescheduled/restructured accounts should be classified by banks as stipulated in the BPRD circular letter No.27 dated June 22, 1999.

Other instruction on the subject shall, however, remain unchanged.

Please acknowledge receipt.

 

Yours faithfully,
(KAZI ABDUL MUKTADIR)
Director

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