As per prudential guidelines of IRAC of the RBI, asset classification is borrower wise and not account wise. My question is that if one account of Mr. A in his individual category is standard but another account of his Prop Firm (A is prop) is NPA then both the account will be treated as a single borrower for the sake of asset classification or separate accounts. And accordingly whether the individual account of the proprietor will be classiefed as NPA?
DR Verma
CAclubindia
