Recent

One Term Loan account was restructured in December 2021 by Bank for Rs 11.00 crore under MSME category . The account was bifurcated into Term loan & FITL A/C. The first payment in term loan was received on 16/03/22 & subsequently payment received in full till 31/03/23. However, even some advance payment is also received in this account till 31/03/23.

However in FITL A/C the first payment was received on 03/01/23 only & no interest & installment amount were recovered on monthly basis even after expiring the holiday period in this account till 31/03/23 .

The bank is insisting to take both account on combined basis . But we are saying that FITL account status shall be treated independently .

The bank has in their books upgraded the account to Standard category . Whether in this situation account can be upgraded from NPA to Standard Category. Please advise

Experts Panelist

CA Virander Kumar Chauhan Goods and Services Tax (GST) Answers Posted : 9148
CA PRAMOD JAIN Audit and Accounting Standards, Corporate Matters/LLP, Goods and Services Tax (GST), Income Tax, Ind AS, Insolvency and Bankruptcy Code, RBI / FEMA, SEBI, International Taxation , Transfer Pricing, Benami Property Law, Bank / Insurance / Stock / Debtors Audit, Internal Audit, Code of Ethics, ICAI, Miscellaneous, Investment & Finance, Valuations Answers Posted : 8656
CA Raman Khatuwala Goods and Services Tax (GST) Answers Posted : 3808
CS Divesh Goyal Corporate Matters/LLP, Insolvency and Bankruptcy Code Answers Posted : 1815
CA Prakhar Bansal Audit and Accounting Standards, Corporate Matters/LLP, Goods and Services Tax (GST), Income Tax, Bank / Insurance / Stock / Debtors Audit, Code of Ethics Answers Posted : 1424
CA MANOJ PAHWA Goods and Services Tax (GST), Income Tax, Insolvency and Bankruptcy Code, RBI / FEMA, International Taxation , Transfer Pricing, Benami Property Law, Bank / Insurance / Stock / Debtors Audit, Miscellaneous Answers Posted : 1297
CA CA. RAJESH KUMAR KHANDELWAL Goods and Services Tax (GST), Income Tax, Bank / Insurance / Stock / Debtors Audit, Valuations Answers Posted : 1210
CA PRAVEEN SHARMA 9871530610 Goods and Services Tax (GST) Answers Posted : 1101
CA ASHU GARG Goods and Services Tax (GST) Answers Posted : 959
CA Rajesh Saluja Goods and Services Tax (GST) Answers Posted : 823

...

Recent

Q. Upgradation of Restructured NPA MSME term loan

Concept by CA Pramod Jain

Experts Panelist