Date of NPA

Settlement formula
(Category - I)

01.04.2010 to 31.03.2011

90% of Amt. in default

01.04.2008 to 31.03.2010

85% of Amt. in default

01.04.2006 to 31.03.2008

75% of Amt. in default

On or before 31.03.2006

65% of Amt. in default

A/c's Technically Written off on or before 31.03.2008

65% of Amt. in default

Date of NPA

Settlement amount

Real Account balance of Rs.10 lacs & above and less than Rs.1 Cr

(Category – II)

Real Account balance of Rs.1 Cr & above and upto Rs.10 Cr

(Category-III)

01.04.09 to 31.03.11

95% of Amt. in default

 Amt. in default

01.04.07 to 31.03.09

85% of Amt. in default

90% of Amt. in default

On or before 31.03.07

80% of Amt. in default

85% of Amt. in default

A/c's Technically Written off on or before 31.03.2008

80% of Amt. in default

85% of Amt. in default

Amt. in default = Real account balance as on date of NPA + CGTMSE/ECGC claim received and appropriated Minus  recoveries after date of NPA

In case of loan accounts with real liability of Rs.10 lacs and above as on the date of NPA, the settlement formula will be as above or Net Present Value (NPV) of available securities Primary as well as Collateral and Securities attached by the court before Judgement (ABJ), whichever is higher. NPV will be calculated with 3 years realization period at prevailing Base Rate + 4%. NPV will be calculated with 3 years realization period at prevailing BR+4%.  At current Base Rate of 10.75%,  the discount factor for 3 years is 0.6476.