According to the RBI’s asset qualification norms, “a loss asset is the one where loss has been identified by the (1) bank or (2) internal or external auditors or (3) by the Co-operation Department or by the Reserve Bank of India inspection but the amount has not been written off, wholly or partly.” Such assets are un-collectible and may have only little value while remaining as a bankable asset and may ot have any significant recovery value.
