1.

Q8. Consider the following 1. Under provisioning, banks have to set aside or provide funds to a prescribed percentage of their bad assets. 2. The percentage of bad asset that has to be ‘provided for’ is called provisioning coverage ratio. Which of the above statements are correct?

Answer»

Q8. Consider the following

1. Under provisioning, banks have to set aside or provide funds to a prescribed percentage of their bad assets.

2. The percentage of bad asset that has to be ‘provided for’ is called provisioning coverage ratio.

Which of the above statements are correct?




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