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Non Performing Assets

Others 4929 views 3 replies

Can someone give me the answer to this question:

"Once a Non Performing Asset, always a Non Performing Asset"-Comment.

Replies (3)
When the loan and advances starts generating income than such character is cease to exist.
when NPA generates income than the assets classification has been changed.

NPA can be a standard asset if starts generating income again... 

Altrernatively to save an account from being an NPA ... u can collect CADU amount i.e. Critical Account Due... from the customer.. which is nothing but an equated monthly installment... if the customer pays this amount before an asset is in last stage of conversion to NPA.. ie. potential NPA.. then asset need not be classified as NPA...

 

corrections and clarifications welcome...


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