Question

Assets which have remained NPA for a period of less than or equal to 12 months are known as:

• A. Stressed Assets
• B. Substandard Assets
• C. Doubtful Assets
• D. Loss Assets

Answer 1

The correct option is B Substandard Assets

1. Substandard assets: Assets which has remained NPA for a period less than or equal to 12 months.
2. Doubtful assets: An asset would be classified as doubtful if it has remained in the substandard category for a period of 12 months.
3. Loss assets: As per RBI, “Loss asset is considered uncollectible and of such little value that its continuance as a bankable asset is not warranted, although there may be some salvage or recovery value."