Economics · Indian Economy
In the banking sector, an asset is classified as a Non-Performing Asset (NPA) primarily when:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The bank increases the disbursement of loans to priority sectors
- 2Principal or interest installments remain overdue for a specified period (e.g., 90 days)✓
- 3The interest rates on banking advances are reduced by the central bank
- 4The loan is fully repaid before the maturity date
Correct answer
Principal or interest installments remain overdue for a specified period (e.g., 90 days)
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