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Question

The provisions on ________assets should not be reckoned for arriving at net NPAs.

A Sub-standard. Correct Answer Incorrect Answer
B Standard. Correct Answer Incorrect Answer
C Doubtful. Correct Answer Incorrect Answer
D Loss. Correct Answer Incorrect Answer
E Risky Correct Answer Incorrect Answer

Solution

The provisions on NPAs state that "standard assets should not be reckoned for arriving at net NPAs." This means that only the non-performing assets (NPAs) of the bank should be considered for calculating the net NPA ratio, which is an important indicator of a bank's asset quality. Standard assets, which are performing assets and are not considered NPAs, should not be included in the calculation of net NPAs.

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