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NPA Assignment – Oct 2021 (Time : 40 minutes)

Answer following qns

1. Analyse following Statement with illustration: (3 marks)

NPA Classification is borrower wise and not facility wise.

2. Analyse this statement with illustration: (3 marks)

NPA classification has nothing to do with security value or networth of borrower.

3. A company has two loan account with a bank. L1 account is overdue from 20.3. 2021
and L2 account is overdue from 11. 2. 2019. Both accounts have outstanding of Rs
100 cr each. Bank is drawing its Balance sheet on 31.3.2021. Find out NPA category
of each and provide separate provision for each as per its NPA category. (4 marks)

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