New Enroll in our GIC Finance Online Course Here!

    Register

    Question

    Under what conditions can an infrastructure project loan

    be classified as a Non-Performing Asset (NPA) before the commencement of commercial operations (unless it is restructured)?
    A If the project fails to achieve financial closure. Correct Answer Incorrect Answer
    B If it is restructured within two years from the original DCCO. Correct Answer Incorrect Answer
    C If it fails to commence commercial operations within three years from the original DCCO. Correct Answer Incorrect Answer
    D If it fails to commence commercial operations within one years from the original DCCO. Correct Answer Incorrect Answer
    E If it fails to commence commercial operations within two years from the original DCCO. Correct Answer Incorrect Answer

    Solution

    A loan for an infrastructure project shall be classified as NPA if it fails to commence commercial operations within two years from the original DCCO, even if it is regular as per the record of recovery, unless it is restructured and becomes eligible for classification as a 'standard asset'.

    Practice Next
      More Banking System in India Questions
    • ...

    • In the question, a sentence is divided into three parts; you have to connect the sentence by using the right connector, without altering its meaning  ...

    • MATCH THE COLUMN

      • (A)Early this February, it looked

      (A)Farmers staged demonstrations at several ...

    • In the following question, two columns are given, containing three phrases each. A phrase from the first column may or may not connect with a phrase fr...

    • Match Column I and Column II and choose the correct match from the given choice

      • Relevant for Exams: