Loan Write off Criteria and Aspects of Credit Appraisal

 International practice to give a fair face to the balance sheet.

1. Loan classification as ‘Bad & Loss” for five (5) years and more.
2. Case are to be filed before write off.
3. 100% provision should be maintain.
4. May be write off without filing case, if the loan amount is less
5. Debt collection unit.
6. Outside agency.
7. Write off loan to be kept in a separate ledger.
8. To be reported to the CIB of Bangladesh Bank.
9. Prior approval of the central Bank is required for writing off loans of the director or former director of the bank.

Credit Appraisal:

1. Technical evaluation
2. Marketing evaluation
3. Financial evaluation
4. Socio-monetary perspective