Stressed Assets/NPAs
Non-Performing Assets (NPAs) are the bad loans of the banks. The criteria to identify such assets have been changing over the time. As of now, a loan is considered NPA if it has not been serviced for one term (i.e., 90 days) - this is known as ‘90 day’ overdue norm.
Classification of NPAs
- Sub-standard: remaining NPAs for less than or equal to 12 months.
- Doubtful: remaining NPAs for more than 12 months
- Loss Assets: where the loss has been identified by the bank or internal/external auditors or the RBI inspection, but the amount has not been written off.
Reasons for ....
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