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Npas In Retail Loan Market
Essay specific features
Written by:
Jacqueline R
Date added:
June 18, 2017
Level:
Grade:
A
No of pages / words:
21 / 5650
Was viewed:
3932 times
Rating of current essay:
Essay content:
The reason being mounting non-performing
assets (NPAs). An NPA is defined as a loan asset, which has ceased to generate any income for a bank
whether in the form of interest or principal repayment. As per the prudential norms suggested by the
Reserve Bank of India (RBI), a bank cannot book interest on an NPA on accrual basis...
displayed 300 characters
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As per the prudential norms suggested by the
Reserve Bank of India (RBI), a bank cannot book interest on an NPA on accrual basis. In other words,
such interests can be booked only when it has been actually received. Therefore, this has become what
is called as a ‘critical performance area’ of the banking sector as the level of NPAs affects the
profitability of a bank as shown in the figure below...
displayed 300 characters
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