If one account gets stamped as NPA, the group accounts will be considered NPA or not?

Question

Accepted Answer

Group accounts may or may not be considered NPA if one account gets stamped as NPA.

Whether group accounts will be considered NPA or not depends on the terms and conditions of the loan agreement.
If the loan agreement has a cross-default clause, then the group accounts will be considered NPA.
However, if the loan agreement has a carve-out provision, then the group accounts may not be considered NPA.
The decision ultimately depends on the specific terms of the loan agreement and the lender's policies.