Question

Q. Which of the following factors are responsible for rising Non Performing Assets?

Select the correct answer from the codes given below:

• A. 1 and 2 only
• B. 1, 3 and 4 only
• C. 2 and 4 only
• D. 1, 2, 3 and 4

Answer 1

The correct option is D 1, 2, 3 and 4

Explanation:

The rise in Non Performing assets is a cumulative result of multiple factors which are as follows:

• Lack of proper monitoring and follow-up measures.
• Non-transparent accounting policy and poor auditing practices.
• Inadequate legal provisions on foreclosure and bankruptcy.
• Lack of sincere corporate culture
• Change in economic policies/environment.
• Lower global demand and slowdown in the domestic economy
• The increasing number of willful defaults