Ans.: 12 months
Explanation:
Categories of NPAs:
Banks are required to classify non¬performing assets further into the following three categories based on the period for which the asset has remained non¬performing and the realisability of the dues:
Sub-standard Assets
A sub¬standard asset would be one, which has remained NPA for a period less than or equal to 12 months. In such cases, the current net worth of the borrower/ guarantor or the current market value of the security charged is not enough to ensure recovery of the dues to the banks in full.
Doubtful Assets
An asset would be classified as doubtful if it has remained in the sub¬standard category for a period of 12 months.
Loss Assets
A loss asset is one where loss has been identified by the bank or internal or external auditors or the RBI inspection but the amount has not been written off wholly. In other words, such an asset is considered uncollectible and of such little value that its continuance as a bankable asset is not warranted although there may be some salvage or recovery value.
0 comments:
Post a Comment