What is Special Mention Accounts (SMA)?
What is Special Mention Accounts (SMA)?

The classification of Special Mention Accounts (SMA) was introduced by the RBI in 2014, to identify those accounts that has the potential to become an NPA/Stressed Asset.  Logic of such a classification is because some accounts may turn NPA soon. Here, an early identification will help to tackle the problem better.

What is Special Mention Accounts?

Special Mention Accounts are those assets/accounts that shows symptoms of bad asset quality in the first 90 days itself.

What is the difference between NPA and SMA?

Remember that NPA has a duration of 90 days. On the other hand, the worst type of special mention account (SMA – 2) has less than 90 days’ duration.  

          The Special Mention Account identification is an effort for early stress discovery of bank loans. It was introduced as a corrective action plan to contain stress. As per the SMA regulations, banks should identify potential stress in the account by creating a new sub-asset category viz. ‘Special Mention Accounts’ (SMA).

Classification of Special Mention Accounts

The Special Mention Accounts are usually categorized in terms of duration. For example, in the case of SMA -1, the overdue period is between 31 to 60 days. On the other hand, an overdue between 61 to 90 days will make an asset SMA -2. In the case of SMA -NF, non-financial indications about stress of an asset is considered.

SMA Sub Category

Classification basis


Non-financial (NF) signals of stress



Principal or interest payment not overdue for more than 30 days but account showing signs of incipient stress, Delay of 90 days or more in (a) submission of stock statement / other stipulated operating control statements or (b) credit monitoring or financial statements or (c) non-renewal of facilities based on audited financials.


SMA- 1

Principal or interest payment overdue between 31-60days.


SMA – 2

Principal or interest payment overdue between 61-90 days.

‘Special Mention’ category of assets is not only on the basis of non-repayment or overdue position but also due to other factors that reflect sickness/irregularities in the account (SMA -NF). 

There will not be any particular provisioning for SMA assets.



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