VituVingiSana wrote:So the money to pay the contractors is finally in.
http://www.businessdaily...2/-/iklm8z/-/index.html
How will KCB account for the NPLs that were shown but not provided for in March? And it seems they remained outstanding at the end of June?
How SHOULD a bank like KCB account for such NPLs that have crossed both the 90 and 180 day mark?
The NPLs as at 31st dec 2015 were kshs 23,477,475,000.The LLP was kshs 11,292,003,000.
At 31st march 2016,the NPLs increased to kshs 30,436,873,000
The LLP also increased to kshs 12,603,423,000.
This means the increase of the NPL of kshs 6,959,398,000 was provided with an LLP of kshs 688,580,000.
If this article is true,the NPL of kshs 6,959,398,000 will now be cleared.But since Q2 is over,this will reflect in Q3 results.
The best way they will account for this NPLs is through LLP which they have done.The other ways are blacklisting in crb and auction.
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