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Direction: Using the following case study , choose the appropriate answers for the questions carefully.
M/s. No Ltd Bank is a commercial bank. The No Ltd bank has classified their advances into Performing assets and Non-Performing Assets. Non - Performing assets are further classified into Sub-Standard assets, Doubtful assets & Loss Assets. All the assets of M/s. XYZ ltd are secured assets.
As per RBI guidelines, loan upon becoming an NPA would first be classified as sub-standard for a period not exceeding 12 months and beyond that, it would have to be classified as DOUBTFUL. The doubtful assets are further categorised into Doubtful-1, Doubtful-2 and Doubtful-3 on the basis of their ageing from the date of classification of NPA. After if it become due it is classified as Loss Assets.
Taking into account the time lag between an asset becoming substandard/doubtful turning into loss asset, RBI has directed that bank should make provision against all assets (i.e) Loans & advances. The Management of XYZ Ltd want your help in creation Provision for Assets for the year ended 31-Mar-2022 as per the RBI Guidelines. The Following are details of XYZ Ltd for the year ending 31-Mar-2022.
Asset which do not carry Normal risk - Rs. 2500
Asset which carries risk less than 12 Months (NPA) - Rs. 2000
  • Doubtful Assets
  • from 01-04-2021 - 400
  • from 01-04-2019 - 300
  • from 01-04-2015 - 100
  • Loss Assets - 500
Q. Out of the above information, what is the value of Standard assets?
  • a)
    2500
  • b)
    800
  • c)
    2000
  • d)
    500
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
Direction: Using the following case study , choose the appropriate ans...
A standard assets are those which do not disclose any problems and which does not carry more than normal risk attached to the Business. Here Asset which do not carry risk is Rs. 2500.
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Direction: Using the following case study , choose the appropriate ans...
Understanding Standard Assets
To determine the value of standard assets in the context of M/s. XYZ Ltd, we need to analyze the classifications of the assets based on the provided information.
Classification of Assets
- Standard Assets: These are performing assets that do not carry any risk or are classified as performing based on RBI guidelines.
- Non-Performing Assets (NPA): This includes assets that are not generating income, categorized further into:
- Sub-Standard Assets: Assets that have been NPAs for less than 12 months.
- Doubtful Assets: NPAs that have been classified as such for more than 12 months, further divided into various categories based on their aging.
- Loss Assets: Assets that are considered uncollectible.
Asset Breakdown
1. Assets with Normal Risk: Rs. 2500
2. Assets with Risk Less than 12 Months (NPA): Rs. 2000
3. Doubtful Assets:
- From 01-04-2021: Rs. 400
- From 01-04-2019: Rs. 300
- From 01-04-2015: Rs. 100
4. Loss Assets: Rs. 500
Calculating Standard Assets
- The total standard assets are those that do not fall under the NPA classifications, which means they are performing and do not carry any risk.
- The only asset that qualifies as a standard asset in this case is the amount of Rs. 2500, which does not carry any risk.
Conclusion
The value of standard assets for M/s. XYZ Ltd, as per the classification and definitions provided, is clearly Rs. 2500. Thus, the correct answer is option 'A'.
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Direction: Using the following case study , choose the appropriate answers for the questions carefully.M/s. No Ltd Bank is a commercial bank. The No Ltd bank has classified their advances into Performing assets and Non-Performing Assets. Non - Performing assets are further classified into Sub-Standard assets, Doubtful assets & Loss Assets. All the assets of M/s. XYZ ltd are secured assets.As per RBI guidelines, loan upon becoming an NPA would first be classified as sub-standard for a period not exceeding 12 months and beyond that, it would have to be classified as DOUBTFUL. The doubtful assets are further categorised into Doubtful-1, Doubtful-2 and Doubtful-3 on the basis of their ageing from the date of classification of NPA. After if it become due it is classified as Loss Assets.Taking into account the time lag between an asset becoming substandard/doubtful turning into loss asset, RBI has directed that bank should make provision against all assets (i.e) Loans & advances. The Management of XYZ Ltd want your help in creation Provision for Assets for the year ended 31-Mar-2022 as per the RBI Guidelines. The Following are details of XYZ Ltd for the year ending 31-Mar-2022.Asset which do not carry Normal risk - Rs. 2500Asset which carries risk less than 12 Months (NPA) - Rs. 2000 Doubtful Assets from 01-04-2021 - 400 from 01-04-2019 - 300 from 01-04-2015 - 100 Loss Assets - 500Q. Out of the above information, what is the value of Standard assets?a)2500b)800c)2000d)500Correct answer is option 'A'. Can you explain this answer?
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Direction: Using the following case study , choose the appropriate answers for the questions carefully.M/s. No Ltd Bank is a commercial bank. The No Ltd bank has classified their advances into Performing assets and Non-Performing Assets. Non - Performing assets are further classified into Sub-Standard assets, Doubtful assets & Loss Assets. All the assets of M/s. XYZ ltd are secured assets.As per RBI guidelines, loan upon becoming an NPA would first be classified as sub-standard for a period not exceeding 12 months and beyond that, it would have to be classified as DOUBTFUL. The doubtful assets are further categorised into Doubtful-1, Doubtful-2 and Doubtful-3 on the basis of their ageing from the date of classification of NPA. After if it become due it is classified as Loss Assets.Taking into account the time lag between an asset becoming substandard/doubtful turning into loss asset, RBI has directed that bank should make provision against all assets (i.e) Loans & advances. The Management of XYZ Ltd want your help in creation Provision for Assets for the year ended 31-Mar-2022 as per the RBI Guidelines. The Following are details of XYZ Ltd for the year ending 31-Mar-2022.Asset which do not carry Normal risk - Rs. 2500Asset which carries risk less than 12 Months (NPA) - Rs. 2000 Doubtful Assets from 01-04-2021 - 400 from 01-04-2019 - 300 from 01-04-2015 - 100 Loss Assets - 500Q. Out of the above information, what is the value of Standard assets?a)2500b)800c)2000d)500Correct answer is option 'A'. Can you explain this answer? for Bank Exams 2025 is part of Bank Exams preparation. The Question and answers have been prepared according to the Bank Exams exam syllabus. Information about Direction: Using the following case study , choose the appropriate answers for the questions carefully.M/s. No Ltd Bank is a commercial bank. The No Ltd bank has classified their advances into Performing assets and Non-Performing Assets. Non - Performing assets are further classified into Sub-Standard assets, Doubtful assets & Loss Assets. All the assets of M/s. XYZ ltd are secured assets.As per RBI guidelines, loan upon becoming an NPA would first be classified as sub-standard for a period not exceeding 12 months and beyond that, it would have to be classified as DOUBTFUL. The doubtful assets are further categorised into Doubtful-1, Doubtful-2 and Doubtful-3 on the basis of their ageing from the date of classification of NPA. After if it become due it is classified as Loss Assets.Taking into account the time lag between an asset becoming substandard/doubtful turning into loss asset, RBI has directed that bank should make provision against all assets (i.e) Loans & advances. The Management of XYZ Ltd want your help in creation Provision for Assets for the year ended 31-Mar-2022 as per the RBI Guidelines. The Following are details of XYZ Ltd for the year ending 31-Mar-2022.Asset which do not carry Normal risk - Rs. 2500Asset which carries risk less than 12 Months (NPA) - Rs. 2000 Doubtful Assets from 01-04-2021 - 400 from 01-04-2019 - 300 from 01-04-2015 - 100 Loss Assets - 500Q. Out of the above information, what is the value of Standard assets?a)2500b)800c)2000d)500Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for Bank Exams 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Direction: Using the following case study , choose the appropriate answers for the questions carefully.M/s. No Ltd Bank is a commercial bank. The No Ltd bank has classified their advances into Performing assets and Non-Performing Assets. Non - Performing assets are further classified into Sub-Standard assets, Doubtful assets & Loss Assets. All the assets of M/s. XYZ ltd are secured assets.As per RBI guidelines, loan upon becoming an NPA would first be classified as sub-standard for a period not exceeding 12 months and beyond that, it would have to be classified as DOUBTFUL. The doubtful assets are further categorised into Doubtful-1, Doubtful-2 and Doubtful-3 on the basis of their ageing from the date of classification of NPA. After if it become due it is classified as Loss Assets.Taking into account the time lag between an asset becoming substandard/doubtful turning into loss asset, RBI has directed that bank should make provision against all assets (i.e) Loans & advances. The Management of XYZ Ltd want your help in creation Provision for Assets for the year ended 31-Mar-2022 as per the RBI Guidelines. The Following are details of XYZ Ltd for the year ending 31-Mar-2022.Asset which do not carry Normal risk - Rs. 2500Asset which carries risk less than 12 Months (NPA) - Rs. 2000 Doubtful Assets from 01-04-2021 - 400 from 01-04-2019 - 300 from 01-04-2015 - 100 Loss Assets - 500Q. Out of the above information, what is the value of Standard assets?a)2500b)800c)2000d)500Correct answer is option 'A'. Can you explain this answer?.
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After if it become due it is classified as Loss Assets.Taking into account the time lag between an asset becoming substandard/doubtful turning into loss asset, RBI has directed that bank should make provision against all assets (i.e) Loans & advances. The Management of XYZ Ltd want your help in creation Provision for Assets for the year ended 31-Mar-2022 as per the RBI Guidelines. The Following are details of XYZ Ltd for the year ending 31-Mar-2022.Asset which do not carry Normal risk - Rs. 2500Asset which carries risk less than 12 Months (NPA) - Rs. 2000 Doubtful Assets from 01-04-2021 - 400 from 01-04-2019 - 300 from 01-04-2015 - 100 Loss Assets - 500Q. Out of the above information, what is the value of Standard assets?a)2500b)800c)2000d)500Correct answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Direction: Using the following case study , choose the appropriate answers for the questions carefully.M/s. No Ltd Bank is a commercial bank. The No Ltd bank has classified their advances into Performing assets and Non-Performing Assets. Non - Performing assets are further classified into Sub-Standard assets, Doubtful assets & Loss Assets. All the assets of M/s. XYZ ltd are secured assets.As per RBI guidelines, loan upon becoming an NPA would first be classified as sub-standard for a period not exceeding 12 months and beyond that, it would have to be classified as DOUBTFUL. The doubtful assets are further categorised into Doubtful-1, Doubtful-2 and Doubtful-3 on the basis of their ageing from the date of classification of NPA. After if it become due it is classified as Loss Assets.Taking into account the time lag between an asset becoming substandard/doubtful turning into loss asset, RBI has directed that bank should make provision against all assets (i.e) Loans & advances. The Management of XYZ Ltd want your help in creation Provision for Assets for the year ended 31-Mar-2022 as per the RBI Guidelines. The Following are details of XYZ Ltd for the year ending 31-Mar-2022.Asset which do not carry Normal risk - Rs. 2500Asset which carries risk less than 12 Months (NPA) - Rs. 2000 Doubtful Assets from 01-04-2021 - 400 from 01-04-2019 - 300 from 01-04-2015 - 100 Loss Assets - 500Q. Out of the above information, what is the value of Standard assets?a)2500b)800c)2000d)500Correct answer is option 'A'. Can you explain this answer?, a detailed solution for Direction: Using the following case study , choose the appropriate answers for the questions carefully.M/s. No Ltd Bank is a commercial bank. The No Ltd bank has classified their advances into Performing assets and Non-Performing Assets. Non - Performing assets are further classified into Sub-Standard assets, Doubtful assets & Loss Assets. All the assets of M/s. XYZ ltd are secured assets.As per RBI guidelines, loan upon becoming an NPA would first be classified as sub-standard for a period not exceeding 12 months and beyond that, it would have to be classified as DOUBTFUL. The doubtful assets are further categorised into Doubtful-1, Doubtful-2 and Doubtful-3 on the basis of their ageing from the date of classification of NPA. After if it become due it is classified as Loss Assets.Taking into account the time lag between an asset becoming substandard/doubtful turning into loss asset, RBI has directed that bank should make provision against all assets (i.e) Loans & advances. The Management of XYZ Ltd want your help in creation Provision for Assets for the year ended 31-Mar-2022 as per the RBI Guidelines. The Following are details of XYZ Ltd for the year ending 31-Mar-2022.Asset which do not carry Normal risk - Rs. 2500Asset which carries risk less than 12 Months (NPA) - Rs. 2000 Doubtful Assets from 01-04-2021 - 400 from 01-04-2019 - 300 from 01-04-2015 - 100 Loss Assets - 500Q. Out of the above information, what is the value of Standard assets?a)2500b)800c)2000d)500Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of Direction: Using the following case study , choose the appropriate answers for the questions carefully.M/s. No Ltd Bank is a commercial bank. The No Ltd bank has classified their advances into Performing assets and Non-Performing Assets. Non - Performing assets are further classified into Sub-Standard assets, Doubtful assets & Loss Assets. All the assets of M/s. XYZ ltd are secured assets.As per RBI guidelines, loan upon becoming an NPA would first be classified as sub-standard for a period not exceeding 12 months and beyond that, it would have to be classified as DOUBTFUL. The doubtful assets are further categorised into Doubtful-1, Doubtful-2 and Doubtful-3 on the basis of their ageing from the date of classification of NPA. After if it become due it is classified as Loss Assets.Taking into account the time lag between an asset becoming substandard/doubtful turning into loss asset, RBI has directed that bank should make provision against all assets (i.e) Loans & advances. The Management of XYZ Ltd want your help in creation Provision for Assets for the year ended 31-Mar-2022 as per the RBI Guidelines. The Following are details of XYZ Ltd for the year ending 31-Mar-2022.Asset which do not carry Normal risk - Rs. 2500Asset which carries risk less than 12 Months (NPA) - Rs. 2000 Doubtful Assets from 01-04-2021 - 400 from 01-04-2019 - 300 from 01-04-2015 - 100 Loss Assets - 500Q. Out of the above information, what is the value of Standard assets?a)2500b)800c)2000d)500Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Direction: Using the following case study , choose the appropriate answers for the questions carefully.M/s. No Ltd Bank is a commercial bank. The No Ltd bank has classified their advances into Performing assets and Non-Performing Assets. Non - Performing assets are further classified into Sub-Standard assets, Doubtful assets & Loss Assets. All the assets of M/s. XYZ ltd are secured assets.As per RBI guidelines, loan upon becoming an NPA would first be classified as sub-standard for a period not exceeding 12 months and beyond that, it would have to be classified as DOUBTFUL. The doubtful assets are further categorised into Doubtful-1, Doubtful-2 and Doubtful-3 on the basis of their ageing from the date of classification of NPA. After if it become due it is classified as Loss Assets.Taking into account the time lag between an asset becoming substandard/doubtful turning into loss asset, RBI has directed that bank should make provision against all assets (i.e) Loans & advances. The Management of XYZ Ltd want your help in creation Provision for Assets for the year ended 31-Mar-2022 as per the RBI Guidelines. The Following are details of XYZ Ltd for the year ending 31-Mar-2022.Asset which do not carry Normal risk - Rs. 2500Asset which carries risk less than 12 Months (NPA) - Rs. 2000 Doubtful Assets from 01-04-2021 - 400 from 01-04-2019 - 300 from 01-04-2015 - 100 Loss Assets - 500Q. Out of the above information, what is the value of Standard assets?a)2500b)800c)2000d)500Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice Bank Exams tests.
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