Question
Which of the following assets is classified as a
Sub-standard asset?Solution
An asset is classified as an NPA if principal or interest payments are overdue for more than 90 days. An asset becomes a sub-standard asset if it remains in the NPA category for a period less than or equal to 12 months (up to one year). It is considered to have well-defined credit weaknesses, but not all of the principal or interest is lost.
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