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Factors Leading To Creation Of Non Performing Assets

Factors Leading To Creation Of Non Performing Assets

As we are aware, any amount which is due for payment to the bank, but not paid, is termed as ‘’Overdue”. Bank has to classify its loan accounts under two categories, viz. Performing assets (PA) and Non-Performing Assets (NPA).

An analysis of NPA accounts indicates the following major reasons for accounts becoming NPA.

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