What is NPA in banking in India?

What is an NPA? A non-performing asset (NPA) is a loan given by a bank that has stopped adding interest to the bank’s kitty for a period more than 90 days. In other words, when a bank stops receiving payment of principal and interest towards a particular loan for more than three months, that loan is treated as an NPA.

When did banking system started in India?

The first bank to be established as the Bank of Hindustan was founded in 1770 in Calcutta. It closed down in 1832. The Oudh Commercial Bank was India’s first commercial bank in the history of the evolution of banking in India. A few other banks that were established in the 19th century, such as Allahabad Bank (Est.

What is the concept of NPA?

Definition: A non performing asset (NPA) is a loan or advance for which the principal or interest payment remained overdue for a period of 90 days. Doubtful assets: An asset would be classified as doubtful if it has remained in the substandard category for a period of 12 months.

Who was the first to introduce the concept of microfinance?

The modern use of the expression “microfinancing” has roots in the 1970s when Grameen Bank of Bangladesh, founded by microfinance pioneer Muhammad Yunus, was starting and shaping the modern industry of microfinancing.

Who invented the concept of banking?

Banking, in the modern sense of the word, can be traced to medieval and early Renaissance Italy,to the rich cities in the north such as F1orence, Veniceand Genoa. The Bardi and Peruzzi families dominated banking in 14th century Florence, establishing branches in many other parts of Europe.

Which type of bank assets remained as NPA for a period exceeding 12 months Mcq?

Substandard assets: Assets which has remained NPA for a period less than or equal to 12 months. Doubtful assets: An asset would be classified as doubtful if it has remained in the substandard category for a period of 12 months.