| For the Classification of a loan account as Special Mention Accounts (SMA)/
Non-Performing Asset (NPA) the following principle is applicable and all
dates mentioned here-in are for illustration purpose only. If there is a
default in making payment of Principal or interest or any other amount
wholly or partly levied by the Company on or before due date, then such
overdue loan account shall be classified as SMA (Special Mention account) or
NPA (Non-performing asset) as per RBI regulations as indicated in below
table: *Upgradation of accounts classified as NPAs Loan account once
classified as NPA can be upgraded as standard only after entire arrears of
principal, interest and any other amount are paid by the borrower.
Illustration for Classification of borrowers account as SMA/NPA for easy
reference: If Due date of a Loan account repayment is April 05, 202X, then
indicative SMA/NPA Classification shall be as follows: If due date of a loan
account is April 05, 202X, and full dues are not received by the Company on
or before this date, the date of overdue shall be April 05, 202X and this
account shall be tagged as SMA-0. If the loan account continues to remain
overdue then this account shall be tagged as SMA-1 on May 05, 202X i.e.,
upon completion of 30 days of being continuously overdue. Accordingly, the
date of SMA-1 Classification for that account shall be May 05, 202X. If the
loan account continues to remain overdue, it shall be tagged as SMA-2 on
June 04, 202X i.e., upon completion of 60 days of being continuously
overdue. Accordingly, the date of SMA-2 Classification for that account
shall be June 04, 202X. Similarly, if the loan account continues to remain
overdue further, it shall be classified as NPA on July 04, 202X. |