 Sam
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Joined: 21 May 2005
Posts: 280
Location: CALIFORNIA
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 Posted: Fri Apr 09, 2004 1:07 am Post subject: Non Performing Asset |
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Non Performing Asset is an asset that is not effectively producing income. It means an asset or account of borrower, which has been classified as:- Sub-standard asset
- Doubtful asset
- Loss asset
An asset is called as non-performing asset if:
- Interest and installment of principal remain overdue for a period of more than 90 days in respect of a term Loan.
- The account remains 'out of order' for a period of more than 90 days, in respect of an overdraft/ cash credit.
- The bill remains overdue for a period of more than 90 days in the case of bills purchased and discounted.
- Any amount to be received remains overdue for a period of more than 90 days in respect of other accounts.
For example, an overdue loan. |
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