Q. Consider the following statements regarding “Non-Performing Assets (NPAs)”:
1.It is a loan or advance for which principal or interest payment remained overdue for a period of 30 days.
2.There is an increase in gross non-performing assets (GNPA) ratio of Indian banks in recent years.
Which of the statements given above is/are correct?
Answer: D
Notes:
Explanation: NPA is a loan or advance for which principal or interest payment remained overdue for a period of 90 days.
- There is a decline in gross non-performing assets (GNPA) ratio of Indian banks.
- In 2017-18, this ratio was as high as 11.2 % raising concerns on the stability of the banking system.
- During last three years (2019-22) alone fresh NPAs add up to ₹10.61 lakh crore
Source: FORUMIAS