Please explian the term of NPA in Bank Audit

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One cash credit account holder is taken Overdraft from Bank in the months of April for the period of 15 days only & not any single transaction from that date to last week of June. In last week of June this overdraft are cleared and balance is also in limit on June end. On July first week this a/c holder also taken Overdraft for the period of 15 days only. This is also cleared on last week of Sept. & no any single transaction between that period. This procedure is taken on Oct & Jan in similar type.

In the above case of Mr. X is the Conucrrent Auditor of the that Branch is classified this type of a/c as NPA ?

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One Cash Credit account holder whose C/C Limit of70 Lakhs. Which taken Overdraft of20 Lakhs for 15 days period in 06-04-2009. From 6-4-2009 to 28-06-2009 no single transaction in the a/c and interest are monthly charged to a/c of3 Lakhs. On 29-06-2009 this C/C holder paid23 Lakhs and balance as on 29-06-2009 is taken of70 Lakhs.

On 7-7-2009 this a/c holder also taken overdraft of5 lakhs for the period of 15 days but not cleared upto 28-09-2009. From 8-7-2009 to 27-09-2009 no single transaction in the a/c & interest is charged monthly of2.60 lakhs. On 29-09-2009 this C/C a/c holder paid7.60 lakhs and balance as on 29-09-09 is taken of70 Lakhs.

This type of overdraft is also taken on 6-10-2009 and cleared on 30-12-2009 & also taken overdraft on 7-1-10 and which is cleared on 31-03-2010.

In the above situation, Can Concurrent Auditor / Statutory Auditor of that Bank is classified this a/c is NPA ?


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