BRPD Circular No. 05: Master Circular: Loan Classification and Provisioning

Page 1 of 2 25 June 2025 BRPD Circular No. 05 Date: --------------------- 11 Ashar 1432 Managing Director/Chief Executives All Scheduled Banks in Bangladesh. Dear Sir, Loan Classification and Provisioning Please refer to BRPD Circular No. 15 dated 27 November 2024 on the captioned subject. 2. To enhance risk management capabilities of banks and strengthen the transparency of the financial reporting, Bangladesh Bank issued BRPD Circular No. 15/2024 on Loan Classification and Provisioning aligning with international best practices. In the paragraph 11(C) of the stated circular, banks were instructed to continue existing forms to report loan classification and provisioning information until further modification. 3. For the purpose of ensuring the proper implementation of the BRPD Circular No. 15/2024 the following instructions are being provided for reporting purposes: a) Revised CL reporting forms (CL-1 to CL-5) are attached herewith. Banks are advised to generate these forms through CBS; b) The Enterprise Data Warehouse (EDW) template (T_PS_Q_LN_PROV) for loan classification and provisioning has been changed and uploaded on the Bangladesh Bank website. Bank should upload the CL (Both Domestic Banking Unit and Offshore Banking Unit) statements in EDW accordingly; c) Banks are advised to report according to the updated CL forms and EDW template from quarter ending 30 September 2025. 4. It is to be noted that, definition of Past Due/Overdue has been given in the paragraph 6(a)(1) of the stated circular. For the purpose of unambiguous understanding and proper reporting, the definition of past due/overdue and the criteria of loan classification of Fixed Term Loan have been clarified as follows: In case of any installment(s) or part of installment(s) of a Fixed Term Loan is not repaid within the due date, the amount of unpaid installment(s) will be termed as ‘past due or overdue installment’ and if the amount of ‘past due or overdue installment’ is equal to or Bangladesh Bank Head Office Motijheel, Dhaka-1000 Bangladesh website: www.bb.org.bd Banking Regulation & Policy Department

Page 2 of 2 more than the amount of installment(s) due, then the entire loan will be classified as per instructions contained in Para 6(a)(3) of the BRPD Circular No. 15/2024. For example: If the amount of past due installment is equal to or more than the amount of installment(s) due within 03 (three) months, the entire loan will be classified as ''Sub-standard''. Explanation: If any Fixed Term Loan is repayable on monthly installment basis, the amount of installment(s) due within 03 (three) months will be equal to the sum of 03 monthly installments. Similarly, if the loan is repayable on quarterly installment basis, the amount of installment(s) due within 03 (three) months will be equal to the 1 quarterly installments. 5. All other instructions of BRPD Circular No. 15/2024 will remain unchanged. 6. This directive has been issued by Bangladesh Bank in exercise of its power conferred on it under section 49(1)(Cha) of the Bank Company Act, 1991. 7. This circular will come into force with immediate effect. Yours faithfully, (Mohammad Shahriar Siddiqui) Director (BRPD) Phone: 9530252

CL-1:SUMMARY OF LOAN CLASSIFICATION AND PROVISION AS OF DD/MM/YYYY Ref: BRPD Circular No. 15/2024 Bank Name: Branch Name:

(Amount in BDT) SL No. Total Outstanding Balance Outstanding Base for Provision Amount of Provision Required Amount of Provision Maintained Interest Suspense on Unclassified (UC) Classified Defaulted Unclassified A/c's Classified A/c's Total STD-0 STD-1 STD-2 SMA SS DF B/L SS DF B/L General Specific Total 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 1 Continuous Loan (CL-2) I) Agricultural Credit (Other than Short Term) II) CMSME Financing III) Consumer Financing (Other than Credit Card) IV) Credit Card V) Industrial Credit VI) Service Sector Credit VII) Trade & Commerce Sector Credit VIII) Other Credit Sub-total of I, II, III, IV, V, VI, VII & VIII 2 Demand Loans (CL-3) I) Agricultural Credit (Other than Short Term) II) CMSME Financing III) Consumer Financing IV) Industrial Credit V) Service Sector Credit VI) Trade & Commerce Sector Credit VII) Other Credit Sub-total of I, II, III, IV, V, VI & VII 3 Fixed Term Loan (CL-4) I) Agricultural Credit (Other than Short Term) II) CMSME Financing III) Consumer Financing (Other than Housing Finance) IV) Housing Finance V) Industrial Credit VI) Service Sector Credit VII) Trade & Commerce Sector Credit VIII) Other Credit Sub-total of I, II, III, IV, V, VI, VII & VIII 4 Short Term Agri. Credit (CL-5) Short Term Agri. Credit Sub-total Sub-Total of (1+2+3+4) Staff Loan Grand Total OFF BALANCE SHEET EXPOSURE NB: Sectors (CMSME, Industrial Credit, Consumer Financing etc.) should be reported aligning with Scheduled Bank Statistics returns) CHECK LIST Form No No of Pages Form No. No. of Pages CL-2 CL-4 CL-3 CL-5

CL-2: RETURNS FOR CLASSIFICATION OF CONTINUOUS LOANS AS OF DD/MM/YYYY Ref: BRPD Circular No. 15/2024 Bank Name: Branch Name: Sector Name: (CMSME Financing, Industrial Credit, Consumer Financing, Credit card, Service Sector Financing etc. as per CL-1)1 (Amount in BDT) SL. No. Name of the Borrower Loan Identification No. Customer's Unique ID Business Identification Number (BIN)/Taxpayer Identification Number (TIN) Nature of Facilities (CC, Working Capital, SOD, OD Etc.) Date of First Sanction (DD/MM/YY) Date of Last Renewal (DD/MM/YY) Latest Sanctioned Limit Balance Outstanding Date of Expiry (DD/MM/YY)2 Period of Overdue/Past Due (in months) (Ref. date - Col.11) Preliminary Classification Objective Criteria (OC) Qualitative Judgment (QJ) 1 2 3 4 5 6 7 8 9 10 11 12 13 14

Final Classification Defaulted Outstanding Cumulative Interest Suspense Collateral Type (Cash/Mortgage etc.) Value of Eligible Collateral (to nearest amount) Outstanding Amount￾Interest Suspense-Value of Eligible Collateral (Col.10-Col.20-Col.22) Base for Provision (Greater amount between Col.23 & 15% of Total Outstanding) Amount of Provision Required Remarks (CIB Classification Status etc.) Status Basis for Classification (OC/QJ) Unclassified A/Cs Classified A/Cs Total SS DF B/L 15 16 17 18 19 20 21 22 23 24 25 26 27 28

1 Loans and advances of same sectors should be reported in orderly manner. 2 In Case of Credit Card, payment due date of minimum due amount should be reported in column 11.

CL-3: RETURNS FOR CLASSIFICATION OF DEMAND LOANS AS OF DD/MM/YYYY Ref: BRPD Circular No. 15/2024 Bank Name: Branch Name: Sector Name: (CMSME Financing, Industrial Credit, Consumer Financing, Service Sector Financing etc. as per CL-1)1 (Amount in BDT) SL. No. Name of the Borrower Loan Identification No. Customer's Unique ID Business Identification Number (BIN)/Taxpayer Identification Number (TIN) Nature of Facilities (PIF, PAD, FBP, IBP, PC, Forced Loan etc.) Date of Sanction (DD/MM/YY) Amount Disbursed Date of Disbursement (DD/MM/YY) Balance Outstanding Claim Date (DD/MM/YY) Period of Overdue/Past Due (in months) (Ref. date - Col. 11 ) Preliminary Classification Objective Criteria (OC) Qualitative Judgment(QJ) 1 2 3 4 5 6 7 8 9 10 11 12 13 14

Final Classification Defaulted Outstanding Cumulative Interest Suspense Collateral Type (Cash/Mortgage etc.) Value of Eligible Collateral (to nearest amount) Outstanding Amount￾Interest Suspense￾Value of Eligible Collateral (Col.10-Col.20-Col.22) Base for Provision (Greater amount between Col.23 & 15% of Total Outstanding) Amount of Provision Required Remarks (CIB Status etc.) Classification Status Basis for Classification (OC/QJ) Unclassified A/Cs Classified A/Cs Total SS DF B/L 15 16 17 18 19 20 21 22 23 24 25 26 27 28

1 Loans and advances of same sectors should be reported in orderly manner.

CL-4: RETURNS FOR CLASSIFICATION OF FIXED TERM LOANS AS OF MM/DD/YYYY Ref: BRPD Circular No. 15/2024 Bank Name: Branch Name: Sector Name: (CMSME Financing, Industrial Credit, Consumer Financing, Housing Finance, Service Sector Financing etc. as per CL-1)1 (Amount in BDT) 1 Loans and advances of same sectors should be reported in orderly manner. 2 RS= Reschedule, RSIW= Reschedule with Interest Waiver, RSTR= Restructure). 3 In case of rescheduling, mention the original nature (e.g. CC, OD, PIF etc.) before 1st rescheduling. 4 In case of reschedule/ restructure, Date of Execution should be mentioned in column 10. 5 Quarterly etc. SL. No. Name of the Borrower Loan Identification No. Customer's Unique ID Business Identification Number (BIN)/Taxpayer Identification Number (TIN) Nature of Sanction (New, RS￾1/2/3/4/...., RSIW￾RSTR etc.)2 Nature of Facility (Project finance, Auto Loan, Personal Loan etc.)3 Date of Sanction/ Reschedule/ Restructure (DD/MM/YY) Amount Disbursed/ Rescheduled/ Restructured Date of First Disbursement (DD/MM/YY)4 Balance Outstanding Latest Installment info Grace Period/ Moratorium Period (in months) Due date of 1st Installment (DD/MM/YY) Due date of Last Installment (DD/MM/YY) Amount Due Since Sanctioning/ Last Rescheduling/ Restructuring Amount Paid Since Sanctioning/ Last Rescheduling/ Restructuring Size Frequency5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

Overdue Amount (Col.17- Col.18) Time Equivalent of Amount Overdue (in months) (Col.19÷Col.12)×Col.13 Time after expiry (if any) (in months) [Ref. Date￾Col. 16] Period of Overdue/ Past Due [Col.20+Col.21] (in months) Preliminary Classification Final Classification Defaulted Outstanding Cumulative Interest Suspense Collateral Type (Cash/ Mortgage etc.) Value of Eligible Collateral (to nearest amount) Outstanding Amount￾Interest Suspense￾Value of Eligible Collateral (Col.11- Col.30- Col.32) Base for Provision (Greater amount between Col.33 & 15% of Total Outstanding) Amount of Provision Required Remarks (CIB Status etc.) Objective Criteria (OC) Qualitative Judgment (QJ) Classification Status Basis for Classification (OC/ QJ) Unclassified A/Cs Classified A/Cs Total SS DF B/L 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38

CL-5: RETURNS FOR CLASSIFICATION OF SHORT TERM AGRICULTURAL CREDIT AS OF DD/MM/YYYY Ref: BRPD Circular No. 15/2024 Bank Name: Branch Name: (Amount in BDT) SL. No. Name of the Borrower Loan Identification No. Customer's Unique ID Business Identification Number (BIN)/Taxpayer Identification Number (TIN) Nature of Facilities (Crop, Fisheries, Livestock etc.)1 Date of Sanction (DD/MM/ YY) Amount Disbursed Date of Disbursement (DD/MM/YY) Balance Outstanding Due Date/Claim Date (DD/MM/YY) Period of Overdue/Past Due (in months) (Ref. date - Col.11 ) Preliminary Classification Objective Criteria (OC) Qualitative Judgment (QJ) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Final Classification Defaulted Outstanding Cumulative Interest Suspense Collateral Type (Cash/Mortgage etc.) Value of Eligible Collateral (to nearest amount) Outstanding Amount￾Interest Suspense￾Value of Eligible Collateral (Col.10-Col.20-Col.22) Base for Provision (Greater amount between Col.23 & 15% of Total Outstanding) Amount of Provision Required Remarks (CIB Status etc.) Classification Status Basis for Classification (OC/QJ) Unclassified A/Cs Classified A/Cs Total SS DF B/L 15 16 17 18 19 20 21 22 23 24 25 26 27 28

1 Loans and advances of same natures should be reported in orderly manner