Net Worth of Borrower/Guarantor or Availability of Security
Since income recognition is based on recoveries, net worth of borrower/guarantor should not be taken into account for the purpose of treating an advance as NPA or otherwise, except to the extent provided in Para 4.2.9 of the Master Circular dated July 1, 2015. Likewise, the availability of security guarantee is not relevant for determining whether or not an account is NPA.