Question
What are Non-Performing Assets? Explain.
Answer :
Word Count : 365
Non-Performing Assets (NPAs) are loans or advances given by banks and financial institutions on which the borrower has stopped making interest or principal repayments for a specified period of time. In India, an asset is classified as non-performing when interest or installment of principal remains overdue for more than 90 days. NPAs represent assets that no longer generate income for the lender and indicate deterioration in the quality of credit portfolio. From an ________ ___ ____ __________ __________ _______ _________ ____ ______ _________ ________.
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Non-Performing Assets (NPAs) are loans or advances given by banks and financial institutions on which the borrower has stopped making interest or principal repayments for a specified period of time. In India, an asset is classified as non-performing when interest or installment of principal remains overdue for more than 90 days. NPAs represent assets that no longer generate income for the lender and indicate deterioration in the quality of credit portfolio. From an ________ ___ ____ __________ __________ _______ _________ ____ ______ _________ ________.
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