BANKING AFFAIRS

Detailed explanation-1: -Explanation: NPAs are non-performing assets where the bank provides loans to the users and the user makes a default in payment. If the user doesn’t pay interest or the principal payment for the period exceeded 90 days are considered NPAs.

Detailed explanation-2: -Loans from a bank that have not paid interest for more than 90 days are known as Bad Loans or Non – Performing Assets (NPAs).

Detailed explanation-3: -The GNPAs are bad loans which the borrower is not in a position to repay at the moment. A loan turns bad or becomes an NPA if they are overdue for over 90 days. In September, the net non-performing assets (NNPA) ratio was at a ten-year low.

Detailed explanation-4: -A bad bank is a financial entity set up to buy Non-Performing Assets (NPAs), or Bad Loans, from banks. The aim of setting up a bad bank is to help ease the burden on banks by taking bad loans off their balance sheets and get them to lend again to customers without constraints.

Detailed explanation-5: -What is Non Performing Assets. Definition: A non performing asset (NPA) is a loan or advance for which the principal or interest payment remained overdue for a period of 90 days. Description: Banks are required to classify NPAs further into Substandard, Doubtful and Loss assets.