RISING NPA

RISING NPA: A REASON TO WORRY FOR THE BANKS

In recent times, we are seeing a surge in NPA in banks.

Now what it really is-

People(individual or company) who take loans from banks are the assets to the banks as they generate revenue for the lenders. Now when the entity fails to pay back the loan instalment and/or interest continuously for more than 90 days, are termed under the Non-Performing Asset(NPA).

Wikipedia link: https://en.wikipedia.org/wiki/Non-performing_asset

Date-May 7, 2015: Banks' gross NPAs rises to 4.45% from 4.1% in 1 year: RBI

http://www.business-standard.com/article/finance/banks-gross-npa-ratio-rises-to-4-45-from-4-1-in-1-year-rbi-115050601332_1.html

Date-Oct 4,2015: UCO Bank registers highest growth in gross NPAs

http://www.businesstoday.in/sectors/banks/uco-bank-registers-highest-increase-in-gross-npas/story/224369.html

Date-Feb 15,2016: RBI not in favour of stretching NPA norms 

http://economictimes.indiatimes.com/news/economy/finance/rbi-not-in-favour-of-stretching-npa-norms/articleshow/50999063.cms