What is the biggest problem facing by Banks
Ans- NPA is one of the biggest problems facing by the banks.
NPA-Non Performing Assests
Meaning Payment is not received upto 90 days then it called as NPA
An Asset which is regulating income to bank
All those assets which are not repaid more than 90 days and less than 12 months
The assets which are considered as doubtful assets more than 12 months
The assets which cannot be recovered
Example of NPA
For example an individual has taken loan on january 1,2017.Due date is june 1 2017.
Upto june 1 it is considered as standard asset
It will be considered as special mention asset from june 02 to August 29 2017 (90 days)
It will be considered as sub standard account from August 30 2017 to August 29 2018
After August 30 2018 it will be considered as Doubtful asset for three years
Loss asset is assigned by the Auditor after 3 years