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Question

Q. With reference to Non-Performing Assets, which of the following statements is/are correct?

Select the correct answer using the code given below:


A
1 only
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B
1 and 2 only
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C
2 and 3 only
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D
1, 2, 3 only
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Solution

The correct option is D 1, 2, 3 only

Explanation:

Statement 1 is correct: An NPA for a period of less than or equal to 12 months is a Substandard asset.

Statement 2 is correct: Substandard assets for a 12 months period become a Doubtful asset.

Statement 3 is correct: Loss Assets are assets that have very little or no recovery. Banks cannot count them as Bankable assets.


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