Bank audit - loss asset

no can't be classified as D1 & D2 

NO IT CANNOT BE CLASSIFIED AS D1 OR D2

Loss asset can be classified as standard asset (But not as D1 or D2) provided all the overdue amount is recovered from the borrower and there is no irregular amount. Important requirement for upgrading the account is recovery of all overdue money. Bank cannot classify the loan as standard even if it write off or waive off the irregular amount. So, recovery of money is necessary