As per the applicable regulatory guidelines, our company classifies loans granted in respect of which instalment(s) has turned overdue under various categories as detailed under:
- SMA 0: Upto 30 days
- SMA 1: From 31 to 60 days
- SMA 2: From 61 to 90 days
- NPA: More than 90 days (Considering the applicable norm to company for NPA classification)
Example:
If the due date of a loan account is March 31, 2026, and the full amount due is not received before the Company completes its day-end process on that date, the account shall be treated as overdue from March 31, 2026.
If the account continues to remain overdue, it shall be classified as SMA-1 upon completion of the day-end process on April 30, 2026, i.e., after being continuously overdue for 30 days. Accordingly, the SMA-1 classification date shall be April 30, 2026.
If the account remains overdue thereafter, it shall be classified as SMA-2 upon completion of the day-end process on May 30, 2026. If the overdue status continues further, the account shall be classified as a Non-Performing Asset (NPA) upon completion of the applicable period prescribed under the extant asset classification norms and upon running the relevant day-end process.