Non-performing assets


Non-performing assets are further classified into the following three categories on the basis of the duration for which they haveremained non-performing:

Sub-standard assets –
assets that have remained NPA for
a period of less than or equal to 12 months. There is a distinct possibility of the bank sustaining some losses on such assets if deficiencies are not corrected.

Doubtful assets –
non-performing assets that have been in the sub-standard category for 12 months. Given the weaknesses in these assets, collection or liquidation is rendered highly improbable.

Loss assets – assets where loss has been identified by the bank
or external auditor/ RBI team but has not been fully written off.
Such assets are considered uncollectible.

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