Full formBanking & Finance
DUNstands forDoubtful Unsecured
Full Form of DUN
What is DUN?
In the Indian banking sector, DUN stands for Doubtful Unsecured, a sub-category of non-performing assets (NPAs) as per the Reserve Bank of India's (RBI) asset classification norms. A loan is classified as doubtful when it remains non-performing for more than 12 months, and unsecured refers to loans without adequate collateral or guarantee. The DUN category is specifically used for loans that are both doubtful and unsecured, indicating a high probability of loss. This classification is critical for banks to calculate provisioning requirements accurately, as DUN loans require a 100% provision under RBI guidelines. It is used by bank officials, auditors, and regulators during financial reporting and inspections. For competitive exams like JAIIB, CAIIB, and RBI Grade B, understanding DUN is essential for questions on asset quality and risk management. The term appears in circulars, balance sheets, and recovery proceedings, helping stakeholders assess the health of a bank's loan portfolio.
DUN का फुल फॉर्म
संदिग्ध असुरक्षित
Example
The bank's asset quality review revealed a significant increase in DUN advances, prompting higher provisioning for the quarter.
DUN — frequently asked questions
What is the full form of DUN?
The full form of DUN in banking is Doubtful Unsecured, referring to a loan that is both doubtful (non-performing for over 12 months) and lacks adequate collateral.
How is DUN different from other NPA categories?
DUN is a sub-category of Doubtful assets. While Doubtful Secured loans have some collateral, DUN loans are unsecured and require 100% provisioning by banks under RBI norms.
Why is DUN important in Indian banking exams?
DUN classification is tested in exams like JAIIB, CAIIB, and RBI Grade B as part of asset liability management and prudential norms, helping candidates understand provisioning and risk assessment.