Non banking assets

[Kiran]

A banking co may have to take possession of a certain asset charged in its fovour on account of the failure of a debtor to repay the loan in time.

[Padma]

K.for how many years can a bank have the possession of the asset,which side of the B/s does it apper.

[Kiran]

It shold be disposed off within 7 years of its acquisition by the bank.Income/loss from such an asset has to be shown seprately in the profit and loss account of the banking co.

[Padma]

Thakns for clearing the dobt.