Answer Posted / mohammed nawaz

Bank Assets are classified into two categories
1) Performing assets 2) Non performing assets

1)Peforming assets:
Performing assets are those assets on which INTEREST/INSTALMENTS are correctly paid by the customer within prescribed time.

2)Non performing assets:
Non performing assets are those assets on which INTEREST/INSTALMENTS have not been paid for a period of more than 90 days.

further the banks are classified based on provisioning into followings:

Standard assets - Performing assets
Sub-standard assets - non performing assets for a - period upto 1 year
Doubtful assets - Non performing assets for a - period of 1 - 3 years
loss assets - Assets which have been considered bad by manager,auditor or officer of RBI.

For further details mail me at mohammednawaz_ca@yahoo.com

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