Question

  An asset, which has remained NPA for a period less than or equal to 12 months is called:

A Special Mention Account Correct Answer Incorrect Answer
B Sub-Standard Asset Correct Answer Incorrect Answer
C Doubtful asset Correct Answer Incorrect Answer
D loss Asset Correct Answer Incorrect Answer
E Standard Asset Correct Answer Incorrect Answer

Solution

a substandard asset would be one, which has remained NPA for a period less than or equal to 12 months. Such an asset will have well-defined credit weaknesses that jeopardize the liquidation of the debt and are characterized by the distinct possibility that the banks will sustain some loss if deficiencies are not corrected.

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