non performing assets N P A of Indian commercial Banks are 1.buildings and land . 2.loans not rapid within stipulated time. 3.government securities. 4
cash holding.
Answers
Answer:
Explanation:
Definition of 'Non Performing Assets'
Definition: A non performing asset (NPA) is a loan or advance for which the principal or interest payment remained overdue for a period of 90 days.
Description: Banks are required to classify NPAs further into Substandard, Doubtful and Loss assets.
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.
3. Loss assets: As per RBI, “Loss asset is considered uncollectible and of such little value that its continuance as a bankable asset is not warranted, although there may be some salvage or recovery value.”
Also See: Foreign Exchange Reserves, Balance of Payment, Base Rate