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
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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