NBFC asset classification

Questions › Category: CA-Final NBFCs › NBFC asset classification

Bhavin asked 3 years ago

For asset classification, be it for bank or NBFC
-> Standard Asset is – Never defaulted in repayment of interest or principle
-> NPA (i.e. other Sub standard and above) is – defaulted in repayment of loan and overdue for minimum 90 days / 3 months / 6 months.
What if the asset which is overdue for between period (for eg. A loan defaulted and overdue for 2 months) Where it’ll be classified? Standard / Sub standard??

Question Tags: NBFC and Bank Asset classification norms

1 Answers

0 Vote Up Vote Down

Ravi Staff answered 3 years ago

Till due date — standard asset
after due date till 3months are complete — standard asset (so even after default asset may remain standard)
after 3 months or more — sub standard asset