03 April, 2020
5 Min Read
Impact of Lockdown on Banks
Part of: GS Prelims and GS-III- Economy -Bank
Banks are concerned about the build up of Non-performing Assets (NPAs) as the disruption caused to business operations and supply chains during the 21-day lockdown period will take time to repair.
What is NPA?
NPA refers to a classification for loans or advances that are in default or are in arrears on scheduled payments of principal or interest.
In most cases, debt is classified as non-performing, when the loan payments have not been made for a minimum period of 90 days.
Concerns of Bankers
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