@VVS, there is an elaborate guideline by CBK on providing for loan loss (CBK/PG/04 - Risk Classification of Assets and Provisioning – page 62 of CBK prudential guidelines). The provisions currently made by HFCK are very adequate. Besides, these NPAs, like at @the deal says, are recoverable by repayments from the borrowers. When that fails, the securities provided adequately covers the NPAs (check ‘discounted value of securities’ in the same page of HF NPA discosure)