BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The Banks with a net NPA ratio above 12 percent fall into the category____
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1
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2
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5
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3
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Explanation:
Detailed explanation-1: -1. Substandard assets: Assets which has remained NPA for a period less than or equal to 12 months. 2. Doubtful assets: An asset would be classified as doubtful if it has remained in the substandard category for a period of 12 months.
Detailed explanation-2: -(D1 = doubtful up to 1 year, D2= doubtful 1 to 3 years, and D3= doubtful more than 3 years). For commercial banks 100 percent of the extent to which the advance is not covered by the realisable value of the security to which the bank has a valid recourse and the realisable value is estimated on a realistic basis.
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