Assets portfolio of the banks

The assets portfolio of the banks is required to be classified as

(1) standard assets

(2) sub-standard assets

(3) doubtful assets and

(4) loss assets. 

Standard asset is one that does not disclose any problems and which does not carry more than normal risk attached to the business .

An asset which has been classified as NPA for a period not exceeding 12 months is considered as sub-standard asset.

Doubtful asset is one which has remained NPA for a period exceeding 12 months.

An asset which is considered uncollectible and loss has been identified by the bank or internal or external auditors or the RBI inspection and the loss has not been written off is regarded as loss asset.