Asset Classification

Standard Assets
Substandard Assets
Doubtful Assets
Loss Assets

Standard Assets
Which are not Non Performing Assets!!
Which are yielding interest
Which is not causing concern to the lender.
Chances of recovery are very high.

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Non Performing Assets

Defined in RBI circular Prudential Norms on

Recognition, Asset Classification and

Provisioning
Interest and/or instalment of principal remains
overdue for more than 90 days.
The bill remains unpaid for more than 90 days
in case of bills purchased or discounted.
Account remains out of order for more than
90 days.
Instalment of principal and/or Interest thereon
remains overdue
for one crop season for long 3
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Substandard Assets
Asset which has remained NPA for a period up

to 12 months.
Needs careful watch and efforts to recover the
over-dues.
Longer is the sickness without treatment,
difficult to recover from sickness.
Fair chances of recovery are there.

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Doubtful Assets
If it has remained in the substandard category

for a period of 12 months.

What do we know about the current financial

position?
About condition of the security?
About value of the security?
Chances of recovery are doubtful.

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Loss Assets
Loss is identified by the financial institution

itself,
Or by the external auditors,
Or by the RBI inspectors,
But the amount is not been written off wholly.

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