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What exactly are NPAs of banks?

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My father [who worked as a bank manager in Indian bank] would constantly get phone calls from higher ups and politicians to give loans to those he rejected. No wonder, Indian Bank was near bankruptcy in the 1990s - with high number of NPAs. read more

NPAs. If the Company defaults over period of time, vigorous follow up is made to avoid becoming NPA since it will affect the Financial Institution/Banks profit. NPAs are sticky assets which do not contribute any profit to lending institution and further provision against such loans. Both ways, lending institution is getting affected. read more

The advances given by banks are called assets, which generate income via interests and instalments. If the instalment is not paid until the due date, it is called a bad loan. If it extends beyond 90 days, it is termed NPA. The ratio of NPAs to total advances given by a bank is a commonly used indicator reflecting the health of the banking system. read more

Banks and NPAs Banking is a slow growth, dull, boring, low margin business which has to be done in a very thorough manner. Well, that is exactly how we were taught in the 1980s when people like Homi Bilpodiwala and Yezdi Malegam were voices that mattered. read more

What exactly constitutes a non-performing asset (NPA) of a bank is not easy to determine. Since banks tend to roll over credit to borrowers, whether the request for such a roll over arises in the normal course of business or owing to a fundamental inability to pay back the loan, is difficult to decide. read more

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