A Non-Performing Asset of a non-agricultural loan book shall be a loan or advance where___:

A Non-Performing Asset of a non-agricultural loan book shall be a loan or advance where___:
[A]Interest and/or instalment of principal remain overdue for 90 days in respect of term loan
[B]The debtor is declared insolvent
[C]Payment of interest/instalment of principal has been irregular
[D]All of the above

Interest and/or instalment of principal remain overdue for 90 days in respect of term loan
NPA of a non-agricultural loan book is a loan/advance wherein interest/instalment of principal remains overdue for 90 days. These NPAs causes capital formation for banks thereby reducing the lending capacity of banks undermining growth. In India recently there has been an increase in NPAs, especially of public sector banks.

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This question "A Non-Performing Asset of a non-agricultural loan book shall be a loan or advance where___:" was published on GKToday on December 8, 2014 at 11:21 am. For Current Affairs Questions Archive Click Here. For General Knowledge Questions Archive Click Here.

Comments

  • Rashi Jain
    Reply

    Ya its correct..
    The answer is option (A).