Question

According to the IRAC Norms, a loan where the borrower has defaulted on payment for over 12 months is classified as _________

Q: Answer-According to the IRAC Norms, a loan where the borrower has defaulted on payment for over 12 months...

Under IRAC norms , 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 internalexternal 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 .