Regulatory Alerts2025-09-12 | BPRD Circular Letter No. 20Added · Updated
DPD Criteria for Banks and Development Finance Institutions
Annexure-C establishes Days Past Due (DPD) thresholds and corresponding IFRS 9 stage allocations for the classification of financial assets across various lending categories, including Small and Medium Enterprises, Corporate Banking, Consumer Financing, Agriculture, and Microfinance. The document specifies that for most portfolios, the required provision is the higher of the IFRS 9 Expected Credit Loss (ECL) or the Prudential Regulation's requirement, while other categories such as Housing Loans and Agriculture Loans follow specific IFRS 9 ECL modelling or distinct DPD stages. These criteria apply to Banks, Development Finance Institutions (DFIs), and Microfinance Banks (MFBs), with a disclaimer noting that the DPD indicators serve as a backstop for rebuttable presumptions under IFRS 9.