Скачать или смотреть Non Performing Assets(NPAs) I Bad Loans I Loan Recovery

Non-Performing Assets (NPA)
NPA expands to non-performing assets (NPA). Reserve Bank of India defines Non Performing Assets in India as any advance or loan that is overdue for more than 90 days.
“An asset becomes non-performing when it ceases to generate income for the bank,” said RBI in a circular form 2007.

To be more attuned to international practises, RBI implemented the 90 days overdue norm for identifying NPAs has been made applicable from the year ended March 31, 2004. Depending on how long the assets have been an NPA, there are different types of non-performing assets as well.

Types of Non Performing Assets (NPA)
Different types of non-performing assets depend on how long they remain in the NPA category.

a) Sub-Standard Assets
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.

b) Doubtful Assets
An asset is classified as a doubtful asset if it remains as an NPA for more than 12 months.

c) Loss Assets
An asset is considered a loss asset when it is “uncollectible” or has such little value that its continuance as a bankable asset is not suggested. However, some recovery value may be left in it as the asset has not been written off wholly or in parts.

NPA Provisioning
Keeping aside the technical definition, provisioning means an amount that the banks set aside from their profits or income in a particular quarter for non-performing assets, such as assets that may turn into losses in the future. It is a method by which banks provide for bad assets and maintain a healthy book of accounts.

Provisioning is done according to which category the asset belongs. The categories have been mentioned in the above section. Not only the type of asset but provisioning also depends on the type of bank. Like, Tier-I banks and Tier-II banks have different provisioning norms.

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