The Banking Industry a few years back was badly in the grip of Non-Performing Assets (bad loans) for which the RBI and banks took special measures. As per the latest financial reports of the industry, what is the status of NPAs at present? [OBC 2008]begin{enumerate}item There are no NPAs now as not a single loan of RS. 5 lakhs and above is given by the bank without proper paperwork.item As reported in the first half of 2007 the NPAs have again risen.item As the interest rates are very high banks are not providing loans to middle class and poor general borrowers. Hence NPAs in private and personal banking area are zero where as in industrial credit sector NPAs are still at the level of 22 percent.end{enumerate}

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

The Banking Industry a few years back was badly in the grip of Non-Performing Assets (bad loans) for which the RBI and banks took special measures. As per the latest financial reports of the industry, what is the status of NPAs at present? [OBC 2008]

A	Only 1 is correct
B	Only 2 is correct
C	Both 1 & 2 are correct
D	Only 3 is correct

Explanation:

Detailed explanation-1: -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.

Detailed explanation-2: -Financial lenders can recover their losses by selling out the NPA or taking its possession. Banks and financial lenders can also sell of the loan on the NPA to any other bank to recover their losses.

Detailed explanation-3: -b) Doubtful Assets An asset is classified as a doubtful asset if it remained as an NPA for more than 12 months.

There is 1 question to complete.