70. The term 'NPA' in banking sector is related to
(a) Bad loans
(b) Good loans
(c) High value loans
(d) Agriculture sector loans
Answers
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Answer:
(c) High value loans
Explanation:
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Bad loans is the answer. Option (a) is correct.
Explanation:
- NPA is the non performing assets.
- The term 'NPA' in banking sector is related to bad loans.
- Over the period of 90 days the person or company fail to give the principal amount or interest that money is considered as the non performing assets.
- In bank the high amount of NPA create a pressure on fund recycling and it reduces the ability of banks for more lending.
- Thus the banks earn lesser interest income.
- So, increasing of NPA not only affected banks performance but also affect the whole economy.
- Substandard, Doubtful and Loss assets are the categories of NPA.
To Learn More...
1.The terms NPAs and Stressed Assets in
financial sector refers to
(a) Insurance companies
(b) Chit funds
(c) Banks
(d) Mutual fund companies
https://brainly.in/question/24006230
2.Banks are not allowed to classify these accounts as non-performing assets.
https://brainly.in/question/3021378
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