Non-Performing Loans (NPLs)
All loans and advances, which are classified as Substandard, Doubtful and Loss, should be categorized as Non-Performing Loans (NPLs).
A loan, where repayments of principal and interest are pre-determined, shall be considered as past due, when it has not been paid on the due date fixed by the bank, as per the terms of sanction.
Credit facilities like overdrafts, lines of credit, etc where no definite repayments are pre-determined shall be treated as past due (out of order), if the outstanding balance remains continuously in excess of 10% of the sanctioned / authorized limit or in cases where the outstanding balance in the principal operating account is less than the sanctioned / authorized limit, but there are not enough credits in the account to cover the interest charged or unauthorized drawings have frequently been allowed.
Bills, which remain unpaid on due dates, shall be considered as past due.