MANAGEMENT

Detailed explanation-1: -The credit facilities backed by guarantee of the Central Government though overdue may be treated as NPA only when the Government repudiates its guarantee when invoked. This exemption from classification of Government guaranteed advances as NPA is not for the purpose of recognition of income.

Detailed explanation-2: -Chapter I. Introduction. Article 292 of the Constitution of India (Annexure-I) extends the executive powers to the Union Government to give guarantees on the security of the Consolidated Fund of India, within such limits, if any, as may be fixed by the Parliament.

Detailed explanation-3: -Guarantees should not be issued for periods exceeding ten years in any case. The total volume of guarantee obligations outstanding at any time may not exceed 10 per cent of the total owned resources of the bank comprising paid up capital, reserves and deposits.

Detailed explanation-4: -A substandard asset is an asset classified as an NPA for less than 12 months. A doubtful asset is an asset that has been nonperforming for more than 12 months. Loss assets are loans with losses identified by the bank, auditor, or inspector that need to be fully written off.