With reference to Non-Performing Assets (NPAs) in Indian banking, consider the following statements: 1. Gross NPA (GNPA) refers to the value of total NPAs before provisioning is made by the bank. 2. Net NPA (NNPA) is calculated by subtracting provisions from the GNPA. 3. As per Basel-III norms, 100% provisioning is mandatory for all types of loans, including standard assets. Which of the above statements is/are correct? |ForumIAS

[A] 1 and 2 only

[B] 2 and 3 only

[C] 1 and 3 only

[D] 1, 2 and 3

Answer: A

Notes:

Explanation:

GNPA reflects the total value of all NPAs a bank holds before
NNPA = GNPA – Provisions. It gives the real burden of bad loans after accounting for safeguards.
100% provisioning is required only in case of NPAs classified as “Loss Assets”, not for all types of loans. For standard loans, provisioning is much lower (5–20% depending on risk profile).

Source: Indian Economy (Ramesh singh)