If the terms and conditions of loans, especially in relation to repayment are not adhered to, especially for a specified period of time, account is classified as an NPA. If accounts are restructured, then too, the terms and conditions of the loans are not fulfilled. But such accounts are not always classified as NPAs.
From an operational perspective, there can be two types of restructured accounts: the first type of accounts are those which are restructured and classified as NPAs; the second type are those which are restructured but asset classification is retained as standard. 15. In the first case, regulatory concerns are few and limited to the issue of upgrading the account to the standard category.