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    Question

    A loan becomes NPA on 31st March. If no recovery is

    made, when does it become a Doubtful Asset?
    A 31st May next year Correct Answer Incorrect Answer
    B 1 year from NPA date Correct Answer Incorrect Answer
    C 90 days from NPA Correct Answer Incorrect Answer
    D 180 days from NPA Correct Answer Incorrect Answer
    E On audit recommendation Correct Answer Incorrect Answer

    Solution

    A Substandard Asset becomes Doubtful if it remains NPA for more than 12 months.

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