IRAC, SMA & NPA Classification Review at Sakariya & Associates ensure accurate and compliant categorisation of borrower accounts in line with RBI’s Income Recognition and Asset Classification norms.

Our reviews help banks identify stress indicators, correct misclassifications, assess provisioning requirements and strengthen credit risk management. This process ensures transparency, early detection of slippages and adherence to regulatory expectations.

Irac, Sma & Npa Classification Review

Our Approach to IRAC & NPA Review

We perform a detailed examination of account operations, repayment history, drawing power, documentation and conduct assessment to ensure correct asset classification and early recognition of stressed accounts.

01

Account Conduct & Repayment Review

Evaluating repayment patterns, overdue ageing and irregularities.
02

Compliance with IRAC Norms

Checking classification accuracy, SMA categorisation and provisioning requirements.
03

Reporting & Correction Recommendations

Highlighting slippages, misclassifications and compliance gaps with corrective insights.

Key Review Areas & Deliverables

  • Verification of IRAC classification for all borrower categories
  • Review of SMA-0, SMA-1 and SMA-2 triggers and ageing
  • NPA identification, asset classification accuracy and provisioning checks
  • Analysis of account conduct, operations and overdue patterns
  • Assessment of drawing power irregularities and diversion indicators
  • Validation of documentation and compliance with sanction terms
  • Identification of early warning signals for stressed accounts
  • Clear, regulator-aligned reporting with actionable corrections

Why Choose Us for IRAC, SMA & NPA Review

Our classification reviews ensure accurate reporting, early detection of stress and full compliance with RBI standards.

  • Deep expertise in RBI norms and asset classification frameworks
  • Detailed, error-free verification with strong documentation support
  • Practical insights for improved credit risk monitoring

Frequently Asked Questions

What is IRAC classification?

A framework prescribed by RBI for classifying loan accounts based on repayment performance and asset quality.

Special Mention Accounts (SMA-0/1/2) used to identify early signs of stress before an account becomes NPA.

A Non-Performing Asset is a loan where interest/principal remains overdue for 90 days or more.

It ensures accurate reporting, proper provisioning and early detection of stressed accounts.

Loan files, repayment schedules, overdue reports, drawing power statements and transactional data.

It prevents misclassification, reduces regulatory risk and strengthens credit monitoring.

Yes, analysing account behaviour reveals stress indicators before slippage.

Yes, incorrect classification may lead to insufficient provisioning and regulatory non-compliance.

Quarterly or as per internal bank policy for effective credit risk management.

Strong domain expertise, regulator-aligned methodology and deep experience in bank audits.