Write notes on Asset Classification Norms.
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NORMS FOR ASSETS CLASSIFICATIONS AND PROVISION FOR LOAN ASSETS
The loan accounts in Banks are classified into four categories. Out of these four categories, the following three categories are considered as NPAs :-
(a) Sub-standard Assets
(b) Doubtful Assets
(c) Loss Assets
The fourth category of loan accounts, which is not included in NPA category is Standard Assets. Standard Asset is one which does not disclose any problems and which does not carry only normal risk attached to the business.
The loan accounts in Banks are classified into four categories. Out of these four categories, the following three categories are considered as NPAs :-
(a) Sub-standard Assets
(b) Doubtful Assets
(c) Loss Assets
The fourth category of loan accounts, which is not included in NPA category is Standard Assets. Standard Asset is one which does not disclose any problems and which does not carry only normal risk attached to the business.
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