📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    Question

    According to the IRAC Norms, which of the following

    asset classifications applies to a loan where the borrower has defaulted on payment for over 12 months but less than 36 months?
    A Standard Assets Correct Answer Incorrect Answer
    B Substandard Assets Correct Answer Incorrect Answer
    C Doubtful Assets Correct Answer Incorrect Answer
    D Loss Assets Correct Answer Incorrect Answer
    E Performing Assets Correct Answer Incorrect Answer

    Solution

    Under IRAC norms , loans overdue for more than 12 months but less than 36 months are classified as Doubtful Assets . These loans are considered high-risk, and their recovery may require legal proceedings.

    Practice Next
    More Financial Management Questions

    Relevant for Exams:

    ask-question