What is SMA1 sma2 sma3?

SMA 1 accounts are those where repayments have been overdue for between 31 and 60 days, while SMA 2 accounts are ones with a delay of between 61 and 90 days. If an account sees repayments delayed by 90 days, it turns into an NPA.

How are SMA cases classified?

There are four types of Special Mention Accounts – SMA-NF, SMA 0, SMA1 and SMA 2. The Special Mention Accounts are usually categorized in terms of duration. For example, in the case of SMA -1, the overdue period is between 31 to 60 days. On the other hand, an overdue between 61 to 90 days will make an asset SMA -2.

What is sma2?

SMA-2 is the third category devised in order to mitigate the bad loan problem with the amount being overdue for tenure between 61 days to less than 90 days. As per the stipulations of the RBI, a loan account which has remain overdue for 90 days or more is classified as a NPA or Non-Performance Assets.

What is SMA2 reporting?

In a recent conversation with bank CEOs, senior regulatory officials have spelt out that provisioning should be considered only for loans where principal or interest payments are overdue between 61 and 90 days as on March 1, 2020. Such loans are categorised as SMA2 — or, special mention accounts (SMA) -2.

What is the full form of SMA in cibil report?

Special Mention Account (SMA): Special account created for reporting Standard Accounts moving toward Sub-Standard. Sub-Standard (SUB): Payments being made after 90 days. Doubtful (DBT): The account has remained Sub-Standard for 12 months. Loss (LSS): An account where loss has been identified and remains uncollectible.

What is the new Sma-2 category?

SMA-2 is the third category devised in order to mitigate the bad loan problem with the amount being overdue for tenure between 61 days to less than 90 days. As per the stipulations of the RBI, a loan account which has remain overdue for 90 days or more is classified as a NPA or Non-Performance Assets.

What are SMA 1 and SMA 2 accounts?

SMA 1 accounts are those where repayments have been overdue for between 31 and 60 days, while SMA 2 accounts are ones with a delay of between 61 and 90 days. If an account sees repayments delayed by 90 days, it turns into an NPA.

What is the percentage of NPAS in SMA 2 in 2018?

“In March 2018, large borrowers accounted for 54.8\% of gross advances and 85.6\% of gross NPAs,” RBI said in the FSR. SMA 2 accounts as a percentage of gross advances decreased across bank-groups. The top 100 large borrowers accounted for 15.2\% of gross advances and 26\% of gross NPAs of banks.

What is the worst type of special mention account (SMA – 2)?

On the other hand, the worst type of special mention account (SMA – 2) has less than 90 days’ duration. The Special Mention Account identification is an effort for early stress discovery of bank loans. It was introduced as a corrective action plan to contain stress.