NPA Guidelines:

A) Term loans: Interest or installments overdue for a period of 90

days.
B) Cash Credit/ Over draft: Account remains out of order for a period
of 90 days.
C) Bills Account: Bills payable or Bills Discounting account remains
overdue or unpaid for a period of 90 days.
D) Agriculture:
 Short duration crop: If installment or interest overdue for two crop
seasons.
 Long duration crop: If installment or interest overdue for one crop
season.
 NPA on account of erosion in the value of security.
If realizable value of security is less than 50% the account will be shifted
to Doubtful category directly.
If realizable value oaf security is less than 10% then the account will be
shifted to loss asset directly.

Asset classification:
Group Definition
Standard. Accounts which are in order
Sub- Accounts which have been classified as NPAs for a period not
standard. exceeding 12 months.
Doubtful Sub standard accounts, which have remained NPAs for period
exceeding 12 months.
Loss Accounts which have become unrealizable, where losses have
assets. been identified by the bank/internal or external auditors/ RBI
inspectors.
Special RBI has instructed banks to identify the accounts which are over
mention due/out of order but not yet completed the 90 days and require
accounts. maintaining a special watch. Banks are free to fix the number of
days for identifying. For provisioning purpose SMAs are clubbed
with Standard Assets only.
CATEGORY PROVISION REQUIREMENTS
Standard Direct Agri. Resi. Select. All other loans and
assets. SME sector Housin sectors advances
g
Loans.
0.25% 1.00% 2.00% 0.40%
Sub- Secured Sub- Un Secured Sub-Standard
standard standard
assets. 15% of out 25% of out standing
standing
Doubtful First 12 months Next 24 months Over 36 months
assets. Secured: 25% Secured: 40% 100%
Unsecured: Unsecured:100% Uniformly.
100%
Loss The entire assets should be written off. If permitted to remain in
assets. the books for any reason, 100% of the outstanding should be
provided for.