Economics · Banking Terminologies
In commercial banking, what does the term 'Non-Performing Asset' (NPA) primarily refer to?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Low-yield government securities held for liquidity
- 2Loans and advances on which interest or principal remains overdue✓
- 3Physical infrastructure not generating revenue
- 4Cash reserves kept idle with the Central Bank
Correct answer
Loans and advances on which interest or principal remains overdue
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