0
0

Non-Performing Assets (NPA)

Introduction

Non-Performing Assets (NPA) Banking Awareness के सबसे important और repeatedly पूछे जाने वाले topics में से एक है, खासकर SBI और IBPS exams में। Questions आमतौर पर NPA की definition, time period, और basic classification को test करते हैं।

NPA की clear understanding ज़रूरी है, क्योंकि यह banking operations को financial stability से जोड़ती है।

Pattern: Non-Performing Assets (NPA)

Pattern

मुख्य idea यह है कि ऐसे loans या advances की पहचान की जाए जो principal या interest के non-payment के कारण bank के लिए income generate करना बंद कर देते हैं और यह स्थिति एक specified period तक बनी रहती है।

Step-by-Step Example

Question

किसी bank loan को Non-Performing Asset (NPA) कब classify किया जाता है?

Options:

  • A. जब interest 30 days तक unpaid रहे
  • B. जब interest या principal 90 days से अधिक समय तक overdue रहे
  • C. जब borrower restructuring की request करे
  • D. जब collateral की value कम हो जाए

Solution

  1. Step 1: Income-generating condition identify करें

    Performing asset वह होता है जो regularly interest या principal repayment generate करता है।

  2. Step 2: RBI classification rule याद करें

    Banking norms के अनुसार, अगर dues 90 days से अधिक समय तक unpaid रहें, तो loan NPA बन जाता है।

  3. Step 3: Incorrect triggers eliminate करें

    Restructuring या collateral value में change, directly NPA को define नहीं करते।

  4. Final Answer:

    जब interest या principal 90 days से अधिक समय तक overdue रहे → Option B

  5. Quick Check:

    90+ days तक income नहीं = NPA ✅

Quick Variations

• Performing Asset → Bank के लिए regular income।

• NPA → 90 days से अधिक समय तक कोई income नहीं।

• Gross NPA → Provisions से पहले total NPAs।

• Net NPA → Provisions के बाद NPAs।

Trick to Always Use

  • Step 1: Check करें कि interest या principal overdue है या नहीं।
  • Step 2: Key number याद रखें → 90 days।
  • Step 3: 90 days के बाद कोई income नहीं → NPA।

Summary

Summary

  • NPA वह loan होता है जो bank के लिए income generate करना बंद कर देता है।
  • 90 days overdue, NPA का standard benchmark है।
  • NPAs bank की profitability और stability को affect करते हैं।
  • Healthy banking system के लिए NPAs को reduce करना बहुत ज़रूरी है।

याद रखने का example:
“90 days तक interest नहीं = NPA.”

Practice

(1/5)
1. Which asset is classified as a Non-Performing Asset (NPA) for a bank?
easy
A. A loan that stops generating interest income
B. A loan backed by collateral
C. A newly sanctioned loan
D. A short-term advance

Solution

  1. Step 1: Identify income generation

    Performing assets generate regular interest or principal.

  2. Step 2: Apply NPA concept

    An asset that stops generating income becomes an NPA.

  3. Final Answer:

    A loan that stops generating interest income → Option A

  4. Quick Check:

    No income to bank = non-performing asset ✅
Hint: No income for bank = NPA.
Common Mistakes: Assuming collateral presence prevents NPA status.
2. After how many days of non-payment does a standard bank loan generally become an NPA?
easy
A. 30 days
B. 90 days
C. 180 days
D. 365 days

Solution

  1. Step 1: Recall RBI norm

    Banks follow a fixed overdue period for NPA classification.

  2. Step 2: Apply the rule

    If interest or principal is overdue beyond 90 days, the loan is an NPA.

  3. Final Answer:

    90 days → Option B

  4. Quick Check:

    90 days overdue = NPA benchmark ✅
Hint: Remember the number 90.
Common Mistakes: Choosing 180 days from older norms.
3. Which of the following best describes a performing asset?
easy
A. A loan under restructuring
B. A loan backed by collateral
C. A loan generating regular income
D. A loan overdue for 90 days

Solution

  1. Step 1: Identify income flow

    Performance depends on regular interest or principal payment.

  2. Step 2: Match with correct description

    A loan generating regular income is a performing asset.

  3. Final Answer:

    A loan generating regular income → Option C

  4. Quick Check:

    Regular income = performing asset ✅
Hint: Income coming in = performing.
Common Mistakes: Assuming collateral decides performance.
4. Which category of asset comes immediately after a loan is classified as NPA?
medium
A. Loss asset
B. Doubtful asset
C. Standard asset
D. Sub-standard asset

Solution

  1. Step 1: Recall NPA classification

    Once a loan becomes NPA, it is further classified.

  2. Step 2: Apply sequence

    The first category after NPA is sub-standard asset.

  3. Final Answer:

    Sub-standard asset → Option D

  4. Quick Check:

    NPA → Sub-standard is the first stage ✅
Hint: First NPA stage = Sub-standard.
Common Mistakes: Jumping directly to doubtful or loss assets.
5. Why are high NPAs a concern for banks?
medium
A. They reduce bank profitability
B. They increase customer deposits
C. They raise interest income
D. They improve liquidity

Solution

  1. Step 1: Identify impact of NPAs

    NPAs stop generating income for banks.

  2. Step 2: Link to profitability

    No income and higher provisions reduce profits.

  3. Final Answer:

    They reduce bank profitability → Option A

  4. Quick Check:

    No income + provisions = lower profits ✅
Hint: More NPAs = less profit.
Common Mistakes: Thinking NPAs improve liquidity.

Mock Test

Ready for a challenge?

Take a 10-minute AI-powered test with 10 questions (Easy-Medium-Hard mix) and get instant SWOT analysis of your performance!

10 Questions
5 Minutes