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


    Question

    Which asset classification is applicable when interest

    on a loan has not been serviced for more than 90 days?
    A Standard Asset Correct Answer Incorrect Answer
    B Sub-standard Asset Correct Answer Incorrect Answer
    C Doubtful Asset Correct Answer Incorrect Answer
    D Loss Asset Correct Answer Incorrect Answer
    E Performing Asset Correct Answer Incorrect Answer

    Solution

    According to IRAC norms, loans become non-performing if overdue for more than 90 days, and they are initially classified as sub-standard assets.

    Practice Next
    ask-question