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Cases Which Qualify for Reducing Provisions and/or Crediting Interest in Suspense

C 28/2010 Effective from 11/11/2010
  1. Where a loan shows significant improvement, its classification may either be amended or cancelled, according to the case. And where classification has improved or the loan becomes unclassified due to improvement in borrower’s positions and his repayment became regular, then part of the provisions may be credited to the profit and loss account.
     
  2. Any payment received from the borrower to repay a loan, whose interest was in suspense, may be considered part of interest in suspense. An equivalent to this amount may be credited to profit and loss account, provided that due and full repayment of the remaining outstanding is not subject to any doubt.