The measures to

save account from

NPA
PRESENTED BY MULTIFUNCTIONS
CONTENTS
 THE CONCEPT OF NPA
 THE DIAGNOSTICS ACCOUNT

TURNING NPA
 REASONS FOR ACCOUNT BEING

NPA
 COMMON MISTAKES DURING THE

TRANSITION
 MEASURES TO SAVE THE

ACCOUNT
 REFERENCES.
THE CONCEPT OF NPA

 ACCORDING TO RBI GUIDELINES

THE NPA IS :
THE DIAGNOSTICS
ACCOUNT TURNING NPA
 THE ACCOUNTS ARE OF THREE TYPES.
◦ THE ACCOUNTS OF LIMITED COMPANIES
◦ THE ACCOUNTS OF FIRMS
◦ INDIVIDUAL ACCOUNTS
 WE CAN FURTHER MAKE DIFFERENT
VARIATIONS INTO THESE.
◦ PUBLIC SECTOR UNITS
◦ PUBLIC LIMITED COMPANIES
◦ CLOSEDLY HELD COMPANIES.

◦ PRIVATE LIMITED COMPANIES

◦ PARTNER SHIP FIRMS WITH UNLIMITED
LIABILITIES
◦ PARTNERSHIP FIRMS WITH LIMITED LIABILITIES.

◦ INDIVIDUAL ACCOUNTS
 PROPERTY LOANS
 HOUSING LOAN
 VEHICLE LOANS
 UNSECURED LOANS LIKE PERSONAL LOANS.
REASONS FOR ACCOUNT
BEING NPA

 THE BASIC REASON BEHIND THE ACCOUNT

TURNING NPA IS
 CHANGE IN THE CASH FLOW
 UNFORSEEN EVENT
 POLICY CHANGE GOVERNEMENT OR

INDUSTRY SPECIFIC
 JOB CHANGE
 DEATH
 BAD STRUCTURING OF ACCOUNT FACILITIES
 WRONG STRUCTURE OF FACILITIES
 TIME DELAY
 COST OVERRUNS
 INSUFFICIENT FUNDING
 OTHER DEBT BURDENS
 DEBT PERFORMANCE CHANGE
 UTILISATION OF DEBT INTO NON

PERFORMING ASSETS
 BAD PLANNING OF FACILITIES VIS A VIS

FORECASTING
COMMON MISTAKES DURING
THE TRANSITION

 LACK OF ADAPTATION TO CHANGES

 LOITERING OVER THE ISSUES ARISING
 TIME DELAYS
 NOT LOOKING OVER THE OTHER AVENUES
IN TIME
 INFLEXIBILITY OF THE FACILITIES
 ILL KNOWLEDGE OF THE
RESTRUCTURING /REVIVAL FACILITIES
AVAILABLE
 ILL RESPONSE FROM THE
BANK/INSTITUTIONS
 LACK OF CHANGE IN THE DEBT STRUCTURE
 LACK OF CHANGE IN THE DEBT
UTILISATION STRUCTURE
 INABILITY TO UNDERSTAND THE
CONTRACTS OF DEBT
 INABILITY TO UNDERSTAND THE CHANGE
BY THE BANK/INSTITUTION.
MEASURES TO SAVE
THE ACCOUNT
 UNDERSTAND THE NEEDS ACCORDING TO THE CHANGE IN THE
ENVIRONMENT
 UNDERSTAND THE CONTRACTS
 UNDERSTAND THE LIABILITY AND ITS SERVICING REQUIREMENTS
 ALWAYS KEEP VIGIL ON BETTER AVENUES OF FINANCE
 ALWAYS KEEP VIGIL ON THE CHANGING FACTORS IN THE CASH
FLOWS / FUND FLOWS
 TAKE HELP OF THE AVAILABLE FACILITIES UNDER THE
RESTRUCTURING / REVIVAL PROGRAMS AND SCHEMES OF THE
GOVERNMENT AND BANK/INSTITUTIONS
 KEEP RECORDS OF THE RBI NOTIFICATIONS AND CIRCULARS AT
LEAST PERTAINING TO THE INDUSTRY AND TYPE OF FINANCE
AVAILED.
 KEEP AN EYE ON THE CHANGING POLICIES OF THE GOVERNMENT
/ BANK/INSTITUTIONS AND FAST ADAPT TO THE CHANGES
REQUIRED.
 KEEP A GOOD RECORD OF THE CORRESPONDENCES
 KEEP THE FINANCER UPDATED AND APPRAISED OF THE
CHANGING SITUATIONS
 KEEP ASKING FOR THE BETTER FACILITIES ACCORDING TO THE
CHANGING ENVIRONMENT.
 WHILE SIGNING OF ANY CONTRACT DOCUMENTS RENEWAL ETC
TAKE HELP OF A PROFESSIONAL TO UNDERSTAND THE
MEANINGS OF THE TERMS AND CONDITIONS.
 DO NOT ACCEPT THE TERMS THAT YOU ARE UNABLE TO SERVE
 IT IS ALWAYS BETTER YOU DO NOT TAKE A DEBT THAN TAKING
ONE THAT YOU CAN NOT SERVE.
CONCLUSIONS
REFERENCES

 WWW.RBI.ORG.IN
 WWW.NIC.IN
 SECURITISATION ACT
 RDDBFI ACT
 TRANSFER OF PROPERTY ACT
 HINDU SUCCESSION ACT
 STAMP ACT
 CONTRACT ACT
 BANKING REGULATIONS ACT
 IDR ACT

 WWW.BIFR.NIC.IN