What is a standard asset?

An asset which does not have more than normal risk attached to the business, and the one which does not disclose any problems is known as a standard asset. You can read about the Non Performing Assets (NPA) – What is the meaning of NPA? [UPSC Economics Notes] in the given link.

If an asset remains a Non Performing Asset for 12 months or less than 12 months, then this Non Performing Asset will be classified as a Sub Standard Asset. 

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