While closing its books of account on 31st March, 2018, a branch of commercial bank finds that: (i) On a Term Loan of ₹ one lakh fifty thousand, quarterly interest due on 29th September, 2017, 29th December, 2017 and 29t

According to the guidelines of the Reserve Bank of India, a term loan is to be treated as a Non-Performing Asset (NPA) if interest and/or instalment of principal remains overdue for a period of more than 90 days. In the given case, interest due on 29th March, 2018, has not become overdue for a period of more than 90 days but interest due on 29th December, 2017 and interest due on 29th September, 2017 have become overdue for periods of more than 90 days. Hence, the term loan is to be treated as NPA on 31st March, 2018.