Q. With reference to Non-Performing Assets, which of the following statements is/are correct?

Select the correct answer using the code given below:

1 only

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1 and 2 only

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2 and 3 only

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1, 2, 3 only

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Solution

The correct option is D 1, 2, 3 only
Explanation:

Statement 1 is correct: An NPA for a period of less than or equal to 12 months is a Substandard asset.

Statement 2 is correct: Substandard assets for a 12 months period become a Doubtful asset.

Statement 3 is correct: Loss Assets are assets that have very little or no recovery. Banks cannot count them as Bankable assets.

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Similar questions

List A	List B
1. Substandard assets	a) Default Capital Assets for more than 12 months.
2. Doubtful assets	b) Default Capital Assets for less than/equal to 12 months.
3. Loss assets	c) Uncollectible capital assets

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

Select the correct answer from the codes given below:

Fixed assets are those assets which remain in the business for more than a year. State true or false.

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