Which of the following is not classification of NPA?

Correct option is B

Impaired Assets is not a classification of Non-Performing Assets (NPA) in banking. The recognized classifications of NPAs under the RBI guidelines are:

• Sub-standard Assets
• Doubtful Assets
• Loss Assets

Information Booster:

1. Sub-standard Assets: Loans that remain NPA for less than 12 months.
2. Doubtful Assets: Loans that have been in the sub-standard category for 12 months or more.
3. Loss Assets: Loans that are non-recoverable and are written off as losses.
4. Impaired Assets is a general term used in accounting standards, not specific to NPA classification in India.

Additional Knowledge:

• (a) Sub-standard Assets: Correct classification under NPAs.
• (b) Impaired Assets: Incorrect; not used under RBI’s NPA framework.
• (c) Loss Assets: A recognized NPA category for uncollectible loans.
• (d) Doubtful Assets: Correct classification for loans with uncertainty of repayment.