Question
What is the basic difference between Gross NPA and Net
NPA? I- Gross NPA is the total of Bank loans and Net NPA is the total of all kinds of loans including credit cards of a particular borrower. II- Gross NPA refers to the sum of all the loans that have been defaulted by the borrower and net NPA is the amount that results after deducting provision for unpaid debts from gross NPA III- Gross NPA refers to the sum of all the loans that have been defaulted by the borrower and Net NPA is when we deduct inflation from the Gross amountSolution
Gross non-performing assets refer to the sum of all the loans that have been defaulted by the borrowers within the provided period of ninety days while net non-performing assets are the amount that results after deducting provision for unpaid debts from gross NPA.
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