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      Question

      What is the reported gross non-performing asset (NPA)

      range for AHFCs?
      A 0.8–1.0% Correct Answer Incorrect Answer
      B 1.1–1.3% Correct Answer Incorrect Answer
      C 1.5–1.7% Correct Answer Incorrect Answer
      D 2.0–2.2% Correct Answer Incorrect Answer
      E 2.5–2.8% Correct Answer Incorrect Answer

      Solution

      ICRA reports AHFCs maintain low gross NPAs in the range of 1.1–1.3%, indicating strong asset quality despite higher operational costs. This low default level, coupled with credit costs of ~0.3%, supports stable returns of 3.5–3.6% on managed assets.

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