Stressed assets are equal to non performing assets plus written off assets plus restructured loans. When assets are not performing, they become doubtful and non-performing assets. If those assets don’t recover, they become bad loans. Before the period of 90 days, they are called Stressed Assets. You can read about the Non Performing Assets (NPA) – Reasons, Classification, Impact, and Measures to Control NPA in the given link.
Predominantly in Indian public sector banks, there has been a massive rise of stressed assets. There are numerous reasons behind this problem, they are, misconduct, malintention, governance related problems, global slow down etc.
- RBI – Reserve Bank of India [UPSC Indian Economy Notes]
- Bad Banks – Idea Proposed by Indian Banking Association (IBA) Due to COVID-19