Classification of resheduled agri loan account

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UBEIDULLA (Querist)
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07 April 2016 In a bank, an agri advance is given in 2012. in 2014 it is reshceduled. The bank manager says the repayment will start in 2017 March. But no interst is served from 2012.
Is this a standard asset or sub standard asset?

Amol S Joglekar

Amol S Joglekar (Expert)
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07 April 2016 Standard Asset. (Since the repayment starts in 2017)

UBEIDULLA

UBEIDULLA (Querist)
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07 April 2016 Dear sir, will it not matter if interest is not served from the beginning?

Amol S Joglekar

Amol S Joglekar (Expert)
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08 April 2016 It will definitely matter.
But for that you should have given the classification as on 31 March 2014. Isnt it? You did NOT mention anything about it.
See the point is.......
A. had it been classified as sub standard as on 31 March 2014, in 2016 it would have appeared in a statement of "substandard to standard"
B. Had it been classified as standard as on 31 March 2014, (where it was rescheduled), it will continue to be standard
Your views please.

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