BANK NPAS
Conceptually speaking a credit facility becomes an NPA when it ceases to generate income for the bank. NPAs can be sub-standard if pending for 12 months, doubtful if above 12 months, and lost NPA if it is long-drawn with little hope of recovery. A loss of asset is one where loss has been identified by the Bank, an Internal or External auditor, or during Reserve Bank of India Inspection.
https://thepolicytimes.com/bank-npas-a-5ws-2hs-analysis/
Conceptually speaking a credit facility becomes an NPA when it ceases to generate income for the bank. NPAs can be sub-standard if pending for 12 months, doubtful if above 12 months, and lost NPA if it is long-drawn with little hope of recovery. A loss of asset is one where loss has been identified by the Bank, an Internal or External auditor, or during Reserve Bank of India Inspection.
https://thepolicytimes.com/bank-npas-a-5ws-2hs-analysis/
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