If an account's quality is very bad but they have come up with a new technology for the product which they believe would revamp the whole operations. What all do you look for funding the account ? Does this by anyway mean - "Throwing good money after bad" ?

The first step is to study the draft of the business plan which is the key to document your future operations. By this you can measure that your business goals of the specific product is clear to your consumer or market.  Evaluate the business plan created with a thorough understanding of its strength and limitations to define the financial requirements and for you to identify sources of your funding.  When you are funding you are emphasizing your accountability to the account rather than profitability.  Identify the likely cost in your business measuring the following:

Your overall business plan should include a detailed funding plan that explains:

• how much money will be required
• when the money will be required
• where the money will be sourced
• what the money will be used for
• when debts will be paid back
• when investors can expect to see returns.

Country's largest lender State Bank of India today expressed concerns about giving fresh loans to accounts which have become non performing assets (NPA) and said the banks do not have any incentive by doing so.

"You can say the regulator has allowed it, that it was required in order to revive (the account), but the question is that it is very difficult to manage. As a result, most banks don't have any incentive once it's treated as an NPA to do anything about it," SBI Chairperson Arundhati Bhattacharya said.

She said the moment an account is declared NPA, giving further money to it, and very often this is required for stressed assets, becomes almost impossible.

Listing reasons, Bhattacharya said, "One, you will be actually bloating up your NPA numbers further by giving it more money. Second, if you look at the PSBs and the kind of questioning they have to go through -- If it is NPA, why did you give it more money? What is the reason you have given money?"

While speaking on bad loans at the same event, RBI Governor Raghuram Rajan said that NPAs are largely an accounting issue.

"But beyond the accounting issue, there is a real issue that for a project under distress, how will you make sure that it's put back on track. Which is why we keep emphasising the fact that if it is an NPA, it does not mean you can't lend to it," Rajan said.

Bhattacharya said stress in the mid-corporates in the recent past has come down.

"In fact, even the larger of the SMEs (small and medium enterprises) are beginning to show less stress," she added.