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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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