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Commerce · Q613

Banking and Financial Institutions

Graduate and Post Graduate · Commerce · question 613

Q613

Under the Corporate Debt Restructuring (CDR) mechanism, loan assets of banks have been categorized. Which one of the following statements is not correct:

A.
Assets belonging to Standard and Sub-Standard category come under Category 1
B.
Assets belonging to Doubtful category come under Category 2
C.
Assets belonging to Doubtful and Loss categories come under Category 2
Answer
D.
Out of total Loan Assets, 90% is Standard and Sub-standard and Doubtful is 10% this lot comes under Category 1

Answer: Option C

Solution

Answer: Option C
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