Kathmandu. Nepal Rastra Bank (NRB) has issued directives for cooperative banks.
The directive has specified the provisions related to the classification of the loan of the cooperative bank and the loan loss. Loans are categorized into good, bad, questionable and bad.
According to the directive, loans that have not exceeded the deadline and have exceeded the deadline for 3 months are classified as good. Loans that have exceeded the deadline from 3 months to a maximum of 6 months have been kept in the minimum.
Similarly, the loans exceeding the deadline of 6 months to more than one year are categorized as doubtful and those with more than one year exceeding the deadline are classified as bad.
The directive states that good loans will be called ‘active loans’ and weak, doubtful and bad loans will be called ‘passive loans’.
Similarly, the directive has also made provision for cooperative banks to maintain 1 percent loan loss of good loan. Similarly, 25 percent of the bad loans, 50 percent of the doubtful loans and 100 percent of the bad loans should be made a loan loss.
