Asset Classification

[sunandaC]

Asset Classification for Banks

All NPAs in the advances portfolio (except State Government guaranteed advances, where guarantee is not invoked) and Central Government advances, where the Central Government has not repudiated the guarantee, are to be classified into three categories

Sub-standard asset - if NPA for a period less than or equal to 18 months,

Doubtful asset - NPA for a period exceeding 18 months

Loss asset - Asset where loss has been identified by the bank/internal/external auditor, but the amount has not been written off wholly.

This classification helps in uniform norms for NPAs for the banks.

 

[rosemarry2]

Asset Classification for Banks

All NPAs in the advances portfolio (except State Government guaranteed advances, where guarantee is not invoked) and Central Government advances, where the Central Government has not repudiated the guarantee, are to be classified into three categories

Sub-standard asset - if NPA for a period less than or equal to 18 months,

Doubtful asset - NPA for a period exceeding 18 months

Loss asset - Asset where loss has been identified by the bank/internal/external auditor, but the amount has not been written off wholly.

This classification helps in uniform norms for NPAs for the banks.

Hey dear,

Here I am uploading Classification of Financial Assets and Liabilities, so please download and check it.