NPA - Meaning, Types and Causes
One of the most important questions asked in bank interviews is "Why NPA is so high in PSU banks ?" If you are going to appear for even clerk interviews then you should learn this concept. NPA Full Form : Non-performing Assets What is NPA NPA Meaning (Non-performing Assets) - All those assets which don't generate regular income are known as NPA. Types of assets Standard assets :- Assets which are generating regular income to the bank Sub-standard assets :- An asset which is overdue for a period of more than 90 days but less than 12 months Doubtful assets :- An asset which is overdue for a period of more than 12 months. Loss assets :- Assets which are doubtful and considered as non-recoverable by bank, internal or external auditor or central bank inspectors Sub-standard assets, Doubtful assets and Loss assets are NPA. Causes of NPA Default - One of the main reason behind NPA is default by borrowers. Economic conditions - T...