Provisioning is a portion of the income set aside to cover forThe BB also tightened the rules for transferring unrealised interest income to the income account. Usually, the banks are supposed to keep 0.25 per cent to 2 per cent provisioning against unclassified loans. “Why should we keep provisioning against these loans too?”Subsequently, he urged the central bank to clarify the issue. Until further instruction of the central bank, the banks would not be allowed to transfer the special general provision COVID-19 to any other segment, the BB notice said. For booking interest generated against loans ranging between Tk 5–10 crore to the income account, approval from the managing director is a must.

Source: Dhaka Tribune December 10, 2020 18:11 UTC