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What are the categories of NPA?

The 3 different categories of Non Performing Assets (NPA’s) are Loss Asset, Doubtful Asset, Substandard Asset. When the amount has not been written off wholly but loss has been identified by the RBI, or external auditor, or internally by the bank, then this asset is classified as a loss asset. You can read about the Non Performing Assets (NPA) – What is the meaning of NPA? [UPSC Economics Notes] in the given link.

When an asset is classified as an NPA for less than 12 months, then it is classified as Substandard NPA. When the asset has not been performing for more than 12 months, then these assets are classified Doubtful Assets.

Further readings:

  1. RBI – Reserve Bank of India [UPSC Indian Economy Notes]
  2. Bad Banks – Idea Proposed by Indian Banking Association (IBA) Due to COVID-19

Related Links

Insolvency And Bankruptcy Code (IBC) – IBC Amendment Bill 2021 [UPSC Notes GS III]

Download Indian Economy Notes For UPSC Examination

Big Bank Reform RSTV – Recent mega-merger of national banks

Mission Indradhanush for PSBs – Revamping Public Sector Banks

K.V. Kamath Panel Report – RBI Committee on Restructuring of Loans

Monetary Policy Committee – Objectives, Structure

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