What do you mean by slippage in asset quality?

Slippages, in banking parlance, is when a standard asset becomes an NPA owing to the borrower not paying interest for more than 90 days.

What does slippage mean in banking?

Slippage refers to the difference between the expected price of a trade and the price at which the trade is executed. Slippage can occur at any time but is most prevalent during periods of higher volatility when market orders are used.

What is restructured assets in banks?

Restructured asset or loan are that assets which got an extended repayment period, reduced interest rate, converting a part of the loan into equity, providing additional financing, or some combination of these measures. This is because a restructured loan was a past NPA or it has been modified into a new loan.

What’s another word for slippage?

What is another word for slippage?

What is slippage percentage?

Slippage is the difference between the expected price of an order and the price when the order actually executes. The slippage percentage shows how much the price for a specific asset has moved.

How do you calculate slippage?

For a long entry the slippage factor is calculated by measuring the range from the theoretical entry price to the day’s highest price. That value is then multiplied by the value entered into Slippage \% field.

How do you analyze asset quality of a bank?

Asset quality ratio = Loan Impairment charges /Total assets, analyses the entity of the annual expenses for impaired loans respect the total amount of asset. in this case it is evaluated the weight of total doubtful loans on gross loans.

Why it is important to analyze the asset quality of banks?

Asset quality is one of the most critical areas in determining the overall condition of a bank. Loans typically comprise a majority of a bank’s assets and carry the greatest amount of risk to their capital. Securities may also comprise a large portion of the assets and also contain significant risks.

What is loan restructuring means?

What is Loan Restructuring? Loan Restructuring fundamentally means the modification of the loan terms and conditions. When a borrower faces financial distress, he can opt to revisit, negotiate and revise the loan terms and reduce the chances of any payment default.

What is loan reconstruction?

Loan restructuring is a process in which borrowers facing financial distress renegotiate and modify the terms of the loan with the lender to avoid default. It helps to maintain continuity in servicing the debt and gives borrowers a certain degree of flexibility to restore financial stability.

What does slither down mean?

to slide down or along a surface, especially unsteadily, from side to side, or with some friction or noise: The box slithered down the chute.