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Commerce · Q209

Banking and Financial Institutions

Graduate and Post Graduate · Commerce · question 209

Q209

In regard to assigning risk weight to NPAs, which one of the following is incorrect?

A.
150% risk weight, when specific provisions are less than 20% of the outstanding amount of the NPA
B.
100% risk weight, when specific provisions are atleast 20% of the outstanding amount of the NPA
C.
50% risk weight, when specific provisions are more than 50% of the outstanding amount of the NPA
Answer
D.
50% risk weight, when specific provisions are atleast 50% of the outstanding amount of the NPA

Answer: Option C

Solution

Answer: Option C
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