Npa

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vineet sharma (Querist)
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29 April 2009 What is the meaning of Non performing asset (NPA) can you please explain in the context of a bank
What is the meaning of Qualifying asset

Vipul J. Bhavsar

Vipul J. Bhavsar (Expert)
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29 April 2009 Non Performing Asset means an asset or account of borrower, which has been classified by a bank or financial institution as sub-standard, doubtful or loss asset, in accordance with the directions or guidelines relating to asset classification issued by RBI.
NPA shall be a Loan or Advance which remains overdue for a period of more than 90 days.

I assume you are asking "Qualifying Asset" as per AS - 16 Borrowing Costs.
A qualifying asset is an asset that necessarily takes a substantial
period of time to get ready for its intended use or sale.
Substantial period of time normally is construed as a period of 12 months.

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