CASE STUDY ON NPA BY ASHISH SIR
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One-liners from this chapter
Free sample — 8 of 66 rapid-fire Q&A cards.
What is the full form of NPA in Indian banking?
NPA stands for Non-Performing Asset. It refers to a loan or advance where interest or principal repayment has remained overdue for more than 90 days.
What is the minimum number of days for an agricultural loan to become NPA?
Two crop seasons for short duration crops.
After how many days does a loan account become an NPA for term loans?
A term loan becomes an NPA when interest or principal installment remains overdue for more than 90 days. This is the standard RBI prudential norm for NPA classification.
What percentage of provision is required for Sub-Standard Assets?
Minimum 15% provision on outstanding balance.
What is a Sub-Standard Asset as per RBI NPA classification?
A Sub-Standard Asset is one that has remained NPA for a period of up to 12 months. Such assets have well-defined credit weaknesses and a distinct possibility of loss.
What is the provision requirement for Doubtful Assets held for more than 3 years?
100% provision on unsecured and secured portions.
How is a Doubtful Asset defined under RBI guidelines?
A Doubtful Asset is one that has remained in the Sub-Standard category for 12 months. It carries all the weaknesses of a Sub-Standard Asset with the added characteristic that collection is highly questionable.
Which RBI circular introduced the concept of SMA classification?
RBI's Framework for Revitalising Distressed Assets, 2014.
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