What are non performing assets in banking?

Question Posted / zahoor ahmad malik

Answers were Sorted based on User's Feedback

What are non performing assets in banking?..

Answer / zahoor ahmad malik

Non Performing assets, we mean those assets which either do
not generate any income in terms of interest or remains
uncovered.When a banker grants a debt to any party on certain
terms and conditions regarding to the repayment of principal
amount and periodic payment of interest on such debt, due to
some reasons (Internal and External)become insolvent and hence
the debt remains unpaid to the banker for a long period of
time which affects the liquidity position of the
bank.Therefore a proper management must be exercised on such
assets as it is the main source of recession in any country

Is This Answer Correct ?

11 Yes

1 No

What are non performing assets in banking?..

Answer / raghu.(v.b.com )aps evng clg

Which assets stop a earning capsity itself such type of assets called as NPA

Is This Answer Correct ?

1 Yes

0 No

Post New Answer

More Accounting General Interview Questions

We have purchased some good from our vendor and we asked them to transport the same to some address but they have raised a debit note to us for transportation instead of invoice. Same like we have given some order to manufacture for developing that product they have charged some amount for that also they have raised the debit note. How to account these type of debit notes in tally..?

0 Answers

Tell me what a deferred asset is and give an example?

0 Answers

what will be the entry of income tax paid in partnership firm.

3 Answers

why journal entry are necessary

2 Answers

wt is Bank Guarantee?wt the pr0 cedure of BG

1 Answers

Received Invoice from Tvs Co. against purchase of 15 pcs of Mouse @ 750 excluding VAT 4%, Pass journal entry in the necessary books of accounts?

6 Answers

What are the 5 basic accounting principles?