Bank Islam Integrated Annual Report 2020

4. CREDIT RISK (CONTINUED) 4.5 Credit Quality of Gross Financing and Advances The table below presents the Group’s and the Bank’s gross financing and advances analysed by credit quality: Group and Bank 31.12.2020 31.12.2019 RM’000 RM’000 Neither past due nor impaired 54,596,595 49,231,998 Past due but not impaired 628,767 558,970 Impaired 373,234 433,001 55,598,596 50,223,969 Gross Impaired Financing as a percentage of Gross Financing and Advances 0.67% 0.86% (a) Neither Past Due nor Impaired Financings classified as neither past due nor impaired are financings of which the customer has not missed a contractual payment (profit or principal) when contractually due and is not impaired as there is no objective evidence of impairment of the financing. The credit quality of gross financing and advances which are neither past due nor impaired is as follows: Group and Bank 31.12.2020 31.12.2019 RM’000 RM’000 Excellent to Good 47,226,265 43,148,587 Satisfactory 6,995,181 5,827,662 Fair 375,149 255,749 54,596,595 49,231,998 Internal rating definition: • • Excellent to Good : Sound financial position of the customer with no difficulty in meeting its obligations. • • Satisfactory : Adequate safety of the customer meeting its current obligations but more time is required to meet the entire obligations in full. • • Fair : High risks on payment obligations. Financial performance may continue to deteriorate. BANK ISLAM MALAYS IA BERHAD INTEGRATED ANNUAL REPORT 2020 331