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      Question

      An asset is classified under the "Substandard" category

      if it has remained a Non-Performing Asset (NPA) for a period less than or equal to how many months?
      A 6 months Correct Answer Incorrect Answer
      B 12 months Correct Answer Incorrect Answer
      C 18 months Correct Answer Incorrect Answer
      D 24 months Correct Answer Incorrect Answer
      E 36 months Correct Answer Incorrect Answer

      Solution

      A substandard asset is one that has remained an NPA for a period less than or equal to 12 months. Beyond 12 months in this category, it migrates to a doubtful asset.

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