Customer Awareness

Bank classifies a loan account as Special Mention Account (SMA), Non-Performing Asset (NPA) immediately in case of default as per the guidelines issued by Reserve Bank of India.

The applicable laws and guidelines and any revision in classification of SMA and NPA from time to time under the applicable laws, rules, guidelines etc., including the guidelines issued by Reserve Bank of India/Statutory authorities shall be binding on the borrower.

The classification norms of SMA categories and classification norms of NPA category in case of default of Term Loan, CC/OD facility, Bill Discounting facility, interest payment is specified hereunder, and such classifications are subject to change from time to time and shall be binding on the borrower when such change(s) is affected. If any account is classified as SMA / NPA, the credit scores (e.g. CIBIL, EXPERIAN, EQUFAX, CRIF) of borrowers & guarantors will be affected which will also affect their credit rating which may please be noted.

If the account is tagged as NPA, it shall be reclassified as standard only after entire overdues are repaid by the borrower. In case of borrowers having more than one credit facility from the Bank, loan accounts shall be upgraded from NPA to standard asset category only upon repayment of entire arrears of interest and principal pertaining to all the credit facilities, which may please be noted.