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      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.

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