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Provisions on standard assets are treated how for net NPA?
AHalf reckoned
BFully reckoned
CPart reckoned
DNot reckoned
Answer & Solution
Correct answer: D. Not reckoned
1. Net NPA nets provisions against gross NPA.
2. Standard asset provisions are shown separately.
3. They are not reckoned in arriving at net NPAs.
_Source: RBI Master Circular, Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances_
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