1-What is npa cases ? 2- what is repo process?

Question

Accepted Answer

NPA cases refer to non-performing assets, which are loans or advances that have stopped generating income for the lender.

NPA cases are typically loans or advances that have not been repaid by the borrower for a specified period of time.
These cases indicate a deterioration in the borrower's creditworthiness and the inability to meet repayment obligations.
Banks and financial institutions classify loans as NPAs based on criteria such as the number of days past due, interest servicing, and recovery prospects.
Once a loan is classified as an NPA, the lender takes various measures to recover the outstanding amount, including legal actions, restructuring, or selling the loan to asset reconstruction companies.
NPA cases have a significant impact on the financial health of banks and can lead to increased provisioning and reduced profitability.

Accepted Answer

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