Books of Selling Bank
The provisioning norms for books of selling bank are as under:
(i) When a bank sells its nonperforming financial assets to other banks, the same will be removed from its books on transfer.
(ii) If the sale is at a price below the net book value (NBV) (i.e., book value less provisions held), the shortfall should be debited to the profit and loss account of that year.
(iii) If the sale is for a value higher than the NBV, the excess provision shall not be reversed but will be utilised to meet the shortfall/ loss on account of sale of other non-performing financial assets.