With effect from March 31, 2005, an asset would be classified as.....if it has remained in the sub-standard category for a period of 12 months.

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

With effect from March 31, 2005, an asset would be classified as____if it has remained in the sub-standard category for a period of 12 months.

A	Sub-standard Assets
B	Profit Assets
C	Doubtful Assets
D	Loss Assets

Explanation:

Detailed explanation-1: -With effect from March 31, 2005, an asset would be classified as doubtful if it has remained in the substandard category for a period of 12 months.

Detailed explanation-2: -4.1.2 Doubtful Assets A doubtful asset was one, which remained NPA for a period exceeding two years. With effect from 31 March 2001, an asset is to be classified as doubtful, if it has remained NPA for a period exceeding 18 months.

Detailed explanation-3: -b) Doubtful Assets An asset is classified as a doubtful asset if it remained as an NPA for more than 12 months.

Detailed explanation-4: -Standard Asset is one which does not disclose any problems, and which does not carry more than normal risk attached to the business. Such an asset should not be an NPA. A substandard asset would be one, which has remained NPA for a period less than or equal to 12 months.

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