In order to bring banks and NBFC on par with regards to NPA recognition, RBI had issued asset classification guidelines wherein any lender, whether bank or NBFC, is required to tag an account as NPA on the day the account becomes overdue for more than 90 days. Banks followed an automated system under which accounts of borrowers are tagged as NPAs on the day it becomes overdue for more than 90 days. However, many NBFCs used to recognise NPA only after the end of 90 or 180 days. Further, many NBFCs upgraded NPAs, as overdue, in the accounts reduced to less than 90 days, while banks do not upgrade an NPA until all the overdue amounts are collected.
Market Commentary
Sensex drops 1416 pts, Nifty ends at 15,809.40; IT shares drag
Market Commentary - End-Session
Quick Wrap: Nifty IT Index registers a drop of 5.74%, NIFTY Crashes 2.65%
Market Commentary - End-Session
Sensex tumbles 1350 pts; Nifty at 15,822
Market Commentary - Mid-Session
Sensex tanks over 1,300 points; ITC bucks weak trend
Market Commentary - Mid-Session
Benchmarks at the day`s low; India VIX spurts over 8%
Market Commentary - Mid-Session