NPA Crisis in India – Reasons and Responses
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According to the Economic Survey 2018-2019, the functioning of the banking sector has improved due to the decrease in the Non-performing assets (NPAs) and an increase in credit growth. The gross NPAs of the public sector banks have declined from 11.5% to 10.1%, between March 2018 and December 2018.
What is NPA?
- To banks, loans given by it are called assets.
- Non-performing assets are those loans/advances which are in default or arrears on scheduled payments of principal or interests.
- This means that the assets are termed to be NPAs if the interests/principles are unpaid more than the specified time
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