BANKING GENERAL KNOWLEDGE
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Fetching very low rate of Interests.
|
|
|
For which interest/instalment has remained unpaid after due date.
|
|
|
Given to sick industrial units .
|
|
|
Have not been disbursed at all .
|
Detailed explanation-1: -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. 1.
Detailed explanation-2: -There are different types of non-performing assets depending on how long they remain in the NPA category. An asset is classified as a sub-standard asset if it remains as an NPA for a period less than or equal to 12 months. An asset is classified as a doubtful asset if it remained as an NPA for more than 12 months.
Detailed explanation-3: -Categories of NPAs Doubtful Asset: Any loan or advance is a doubtful asset if it remains outstanding or NPA for a period of more than 12 months and is already classified as a sub-standard asset.
Detailed explanation-4: -4.1.2 Doubtful Assets A doubtful asset was one, which remained NPA for a period exceeding two years. With effect from 31 March 2001, an asset is to be classified as doubtful, if it has remained NPA for a period exceeding 18 months.