Stressed assets = NPAs + Restructured loans + Written off assets
Stressed assets are a powerful indicator of the health of the banking system. Stressed assets indicate the correct picture of a bank’s asset quality. NPAs are those assets whose principal and interest are not coming during the last 90 days. Restructured assets are the assets whose repayment period and/or other terms are rescheduled for the borrower. Written off assets are the assets that are covered to alternative mechanisms like provisioning as there is little chance for the asset to return. Here, actions against the borrower is in procedure.
