Provisions and Contingencies
This item represents the aggregate of the provisions made in respect of the following:
(a) Non-performing assets
(b) Taxation
(c) Diminution in the value of investments
(d) Provisions for contingencies
Provisioning norms for NPA of nationalised banks are given in RBI/2015-16/101 DBR.No.BP.BC.2/21.04.048/2015-16 dated 1st July, 2015. Interest reversal in case of advances which have become NPA to be specifically checked. The most important item included in this head is the provision in respect of non–performing assets. The other provisions are usually made at the head office level.