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Asset classification and provisioning norms
What is the meaning of NPA in the context of asset classification?
A Non-Performing Asset (NPA) is a loan or advance where interest or principal has remained overdue for more than 90 days in a term loan, or the account remains out of order for 90 days in case of cash credit/overdraft.
What is the classification period for a Sub-Standard Asset before it becomes Doubtful?
12 months of remaining sub-standard
What is the 90-day norm for NPA classification introduced by RBI?
RBI introduced the 90-day overdue norm for NPA classification from March 31, 2004, replacing the earlier 180-day norm, aligning Indian banks with international best practices.
What is the provisioning rate for secured portion of Doubtful Assets in D3 category?
100 percent provision required
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