📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    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.

    Practice Next
    More Banking System in India Questions

    Relevant for Exams:

    ask-question