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Answer Posted / 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 |
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