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      Question

      A Sub-standard asset is a non performing asset that has

      remained non-performing for a period __ __________
      A Less than or equal to 90 days Correct Answer Incorrect Answer
      B Less than or equal to 6 months Correct Answer Incorrect Answer
      C Less than or equal to 12 months Correct Answer Incorrect Answer
      D More than or equal to 6 months Correct Answer Incorrect Answer
      E More than or equal to 12 months Correct Answer Incorrect Answer

      Solution

      Non performing assets can be further categorized as:  

      • Sub Standard Assets - An asset which has remained NPA for a period less than or equal to 12 months  
      • Doubtful Assets - An asset which has remained in the substandard category for a period of 12 months.  
      • Loss assets - Identification of loss by bank, or internal/external auditor, or RBI ; Asset not written off wholly ; Asset is considered uncollectible and its continuance as a bankable asset is not warranted but may have some salvage and recovery value .  

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