what is NPA

Answers were Sorted based on User's Feedback



what is NPA ..

Answer / pinal

Loans and advances given by banks to its customers is as
asset to the bank. But, when repayment of interest and
Principal is overdue, such asset is classified as NPA in the
financial reports of banks.

Is This Answer Correct ?    38 Yes 3 No

what is NPA ..

Answer / prashanthi

NPA is nothing but NON PERFORMING ASSETS
Simply its a Bad Debts to Bank.

Is This Answer Correct ?    23 Yes 10 No

what is NPA ..

Answer / kool

Banks earn income from an asset(loan in case of banks)by
way of interest. As long as the asset is good (performing),
it generates income for banks. When an assets becomes
bad,it stops generating income. Banks cannot charge
interest on bad assets. Thats why it is called as Non
Performing Asset.

Is This Answer Correct ?    9 Yes 1 No

what is NPA ..

Answer / surbhi naval gadhiya

A NPA WAS DEFINED AS A CREDIT IN
RESPECT OF WHICH INTREST AND
INSTALLMENTS OF PRINCIPAL,
AMOUNT HAS REMAINED 'PAST DUE'
FOR A SPECIFIC PERIOD OF TIME.

SPECIFIC PERIOD IS REDUCED IN
A PHASE MANNER AS UNDER;
1993-4 QUARTER
1994-3 QUARTER
1995-2 QUARTER

Is This Answer Correct ?    4 Yes 2 No

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