Asset Classification, Income Recognition, Provisioning and Capital Management Module

CRisMacSolution provides a robust module for Asset Classification in terms of RBI Guidelines. Asset Classification is done generally on a quarterly basis as is required by RBI and for the purpose of quarterly balance sheet preparation. However, if the Bank wishes, monthly asset classification module can also be provided.

RBI has implemented the 90 days delinquency norms for NPA classification. Any dues to a bank under a credit facility will be overdue if not paid by the due date fixed by the bank. In case of all direct agricultural advances, an account should be treated as NPA if interest and / or installment of principal remained overdue for two crop seasons from the due date for short duration crops and one crop season from the due date for long duration crops. Long duration crops have a crop season longer than one year and crops, which are not long duration crops are treated as short duration crops. Depending upon the duration of crops raised by a farmer, the above NPA norms would also be applied to agricultural term loan availed of by him. The crop season for each crop, which means the period up to harvesting, has to be decided by the State Level Bankers Committee in each state.

Specific functionalities covered under this module are

  1. Asset Classification - customer-wise
  2. Asset Classifications - In accordance with Asset Class / Segmental / Sectoral rules like for agriculture (Long-term & Short-term Crops), Small loans, Commercial Real Estates, Housing Loans, Sensitive Sector Loans like loans against shares, loans to share brokers etc., Cash Credit accounts, Restructured Accounts.
  3. Up gradation and degradation tracking.
  4. Actual Amount Recovered and the Type of Recovery.
  5. Critical Amount Due computation.
  6. NPA movement Report.
  7. Provision Calculation as per RBI guidelines including variable provisioning on Standard assets.
  8. Risk Weighted Asset Computation (Basel II Standardised Approach).
  9. Capital Requirement Computation.
  10. Closing Returns of Loans & Advances.
  11. Pre and Post MOC Audit Reports.