Answer:
In banking, NPA are loans given to doubtful customers who
may or may not repay the loan on time. There are two types
of assets viz.,performing and non-performing. Performing
loans are standard loans on which both the principle and
interest are secured and their return is guaranteed.
Non- Performing Asset[ NPA] is a a result of asset
liability mismatch.A NPA account in the books of accounts
is an asset as it indicates the amount receivable from the
defaulters
may or may not repay the loan on time. There are two types
of assets viz.,performing and non-performing. Performing
loans are standard loans on which both the principle and
interest are secured and their return is guaranteed.
Non- Performing Asset[ NPA] is a a result of asset
liability mismatch.A NPA account in the books of accounts
is an asset as it indicates the amount receivable from the
defaulters
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