BANKING AFFAIRS

Detailed explanation-1: -Bad loans in banking terminology are generally known as NPAs. A non performing asset is an asset which is usually listed in the balance sheet of a bank. It is an asset on which interest is due for more than 90days and the payment for the same has not been yet received.

Detailed explanation-2: -: a loan that will not be repaid.

Detailed explanation-3: -When a bank is unable to recover non-performing loans, it can repossess assets pledged as collateral or sell off the loans to collection agencies. When a bank has too many non-performing loans in its balance sheet, it poses cash flow problems for the bank since it is no longer earning income from its credit business.

Detailed explanation-4: -NPA full form is Non-performing Assets. NPA is nothing but the loans that are being given by the Indian banks and other operating financial institutions whose interests as well as the principal amounts have been in a state of overdue status for a fairly long time.

Detailed explanation-5: -Non-performing assets can include loans, bonds, and other financial instruments, such as mortgages, commercial loans, and credit card debt. The term is most commonly used in the banking and finance industries but can also refer to other investments, such as real estate.