Computation of Non-performing assets levels

Banks should deduct the following items from the Gross Advances and Gross NPAs to arrive at the Net advances and Net NPAs respectively:

• Balance in Interest Suspense Account
• DICGC/ECGC claims received and held, pending adjustment
• Part payment received and kept in suspense account
• Total provisions held (excluding amount of technical write off and provision on standard assets) 

Categories of Non-performing assets

Banks are required to classify nonperforming assets into the following three categories based on the period for which the asset has remained nonperforming and the reliability of the dues:

1. Substandard Assets
2. Doubtful Assets
3. Loss Assets