CAIIB BFM CASE STUDY ON NPA BY ASHISH SIR
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Bank Financial Management — CAIIB.
One-liners from this chapter
Free sample — 8 of 65 rapid-fire Q&A cards.
What is the full form of NPA in the context of Indian banking?
NPA stands for Non-Performing Asset, which is a loan or advance where the borrower has stopped making interest or principal repayments for a specified period.
What is the SMA-0 category under RBI's early NPA warning system?
Principal or interest overdue between 1 to 30 days
As per RBI guidelines, after how many days of overdue does a loan account become an NPA?
A loan account becomes an NPA when interest or principal remains overdue for more than 90 days for term loans, or the cash credit or overdraft account remains out of order for more than 90 days.
What is the SMA-1 classification for loan accounts under RBI norms?
Principal or interest overdue between 31 to 60 days
What is a 'Sub-Standard Asset' in NPA classification?
A Sub-Standard Asset is one that has been classified as NPA for a period not exceeding 12 months, carrying more than normal risk attached to the business.
What is the SMA-2 category in RBI's stress account monitoring framework?
Principal or interest overdue between 61 to 90 days
What is a 'Doubtful Asset' under RBI's NPA asset classification norms?
A Doubtful Asset is one that has remained in the Sub-Standard category for a period of 12 months, where collection or liquidation in full is considered highly questionable and improbable.
What is the D1 category under Doubtful Assets classification?
NPA remaining doubtful for up to 12 months
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