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Rising NPAs

Rising NPAs: A Nightmare For the Banking Industry

What exactly is a 'Non-Performing Asset NPA ' A classification used by financial institutions that refer to loans that are in jeopardy of default. Once the borrower has failed to make interest or principal payments for 90 days the loan is considered to be a non-performing asset. The unabated rise in stressed assets of the Indian banking sector is a cause for concern for the economy. The Reserve Bank of India (RBI) India’s central bank brought out a discussion paper on how to tackle the problem of rising NPAs The problem is acute particularly among the state-owned Public Sector banks. With