Question
Consider the following statements with respect to the
Non Performing Asset- I.NPA refers to a classification for loans or advances that are in default or are in arrears on scheduled payments of principal or interest. II.For agriculture, if principle and interest is not paid for three cropping seasons, the loan is classified as NPA. III.Gross NPAs are the sum of all the loans that have been defaulted by the individuals. Which of the following statements is/are CORRECT?ÂSolution
NPA refers to a classification for loans or advances that are in default or are in arrears on scheduled payments of principal or interest.For agriculture, if principle and interest is not paid for two cropping seasons, the loan is classified as NPA.Gross NPAs are the sum of all the loans that have been defaulted by the individuals
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