BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Doubtful asset
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Sub-standard Asset
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Loss
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None of the above
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Detailed explanation-1: -An asset is classified as a sub-standard asset if it remains as an NPA for a period less than or equal to 12 months. An asset is classified as a doubtful asset if it remained as an NPA for more than 12 months.
Detailed explanation-2: -Substandard assets: Assets which has remained NPA for a period less than or equal to 12 months.
Detailed explanation-3: -3 Doubtful Assets With effect from March 31, 2005, an asset is required to be classified as doubtful, if it has remained NPA for more than 12 months. For Tier I banks, the 12-month period of classification of a substandard asset in doubtful category is effective from April 1, 2009.
Detailed explanation-4: -1. Standard Assets. They are NPAs that have been past due for anywhere from 90 days to 12 months, with a normal risk level.
Detailed explanation-5: -The 3 different categories of Non Performing Assets (NPA’s) are Loss Asset, Doubtful Asset, Substandard Asset.