Provision for NPA in banks

Provisions for NPA in Banks with classification of assets
Replies (3)
Quick Summary
This discussion explains how banks classify Non-Performing Assets (NPAs). Assets are categorised as Standard (not NPA), Sub-Standard (NPA up to 18 months), Doubtful (NPA over 18 months), and Loss (unrecoverable). While the classification is outlined, the specific provisioning rates are best confirmed directly with individual banks.

Classification  is  follows 

1) Standard  Assets  -     Not   NPA 

2) Sub- Standard   Assets -    Classified as   NPA  for  a period  of not  exceeding  18  months 

3) Doubtful    Assets  -     Remain  NPA  for  more  than  18 months 

4) Loss  Assets  -     Loss   has been identified by bank  , Not  recoverable . 

Thamks but can you help in provisioning rate ?

Current rates  you can confirm  form  banks .

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