B Com Exam > B Com Videos > Indian Financial System > Non Performing Assets - Indian Banking System, Indian Financial system
Non Performing Assets - Indian Banking System, Indian Financial system Video Lecture | Indian Financial System - B Com
|
39 videos|39 docs|14 tests
|
FAQs on Non Performing Assets - Indian Banking System, Indian Financial system Video Lecture - Indian Financial System - B Com
| 1. What are Non-Performing Assets (NPAs) in the Indian banking system? |  |
Ans. Non-Performing Assets (NPAs) refer to loans or advances that have stopped generating interest income for the bank or have not been paid back by the borrower for a specified period. These assets are considered as non-performing when the borrower fails to make interest or principal payments for 90 days or more.
| 2. How do NPAs impact the Indian banking system? | |
Ans. NPAs have a significant impact on the Indian banking system. When banks have a high proportion of NPAs, it affects their profitability, asset quality, and overall financial health. It reduces the availability of funds for lending, hampers the bank's ability to meet regulatory requirements, and can lead to liquidity issues. NPAs also pose a risk to financial stability and can weaken investor confidence in the banking sector.
| 3. What are the main causes of NPAs in the Indian financial system? | |
Ans. Several factors contribute to the rising NPAs in the Indian financial system. These include economic downturns, lack of creditworthiness assessment by banks, willful default by borrowers, delays in project implementation, inadequate risk management practices, policy and regulatory issues, and external factors such as natural disasters or market fluctuations. The combination of these factors leads to the accumulation of NPAs in the banking system.
| 4. How does the Indian government address the issue of NPAs? | |
Ans. The Indian government has implemented various measures to address the issue of NPAs. These include the establishment of asset reconstruction companies to acquire and resolve NPAs, the introduction of the Insolvency and Bankruptcy Code to facilitate the resolution of stressed assets, recapitalization of public sector banks, and reforms in the banking sector to improve governance and risk management practices. The government also emphasizes promoting responsible lending and improving credit monitoring systems to prevent the creation of new NPAs.
| 5. What are the implications of NPAs on the Indian economy? | |
Ans. NPAs have significant implications for the Indian economy. They can lead to a credit crunch, as banks become cautious in extending new loans. This hampers economic growth and investment. NPAs also strain the government's fiscal resources, as it may need to infuse capital into public sector banks to maintain their solvency. Additionally, NPAs reduce the availability of credit for productive sectors, leading to job losses and hindering the overall development of the economy.
Related Exams
About this Video
|
4.78/5 Rating |
|
Nov 23, 2024 Last updated |
Video Description: Non Performing Assets - Indian Banking System, Indian Financial system for B Com 2024 is part of Indian Financial System preparation.
The notes and questions for Non Performing Assets - Indian Banking System, Indian Financial system have been prepared according to the B Com exam syllabus.
Information about Non Performing Assets - Indian Banking System, Indian Financial system covers all important topics for B Com 2024 Exam.
Find important definitions, questions, notes, meanings, examples, exercises and tests below for Non Performing Assets - Indian Banking System, Indian Financial system.
Introduction of Non Performing Assets - Indian Banking System, Indian Financial system in English is available as part of our Indian Financial System for B Com & Non Performing Assets - Indian Banking System, Indian Financial system in
Hindi for Indian Financial System course. Download more important topics related with notes, lectures and mock test series for
B Com Exam by signing up for free.
Description
Video Lecture & Questions for Non Performing Assets - Indian Banking System, Indian Financial system Video Lecture | Indian Financial System - B Com - B Com full syllabus preparation | Free video for B Com exam to prepare for Indian Financial System.
Information about Non Performing Assets - Indian Banking System, Indian Financial system
Here you can find the meaning of Non Performing Assets - Indian Banking System, Indian Financial system defined & explained in the simplest way possible.
Besides explaining types of Non Performing Assets - Indian Banking System, Indian Financial system theory, EduRev gives you an ample number of questions to practice Non Performing Assets - Indian Banking System, Indian Financial system tests,
examples and also practice B Com tests.
|
39 videos|39 docs|14 tests
|
|
Explore Courses for B Com exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
Related Searches
Objective type Questions
,Exam
,Summary
,MCQs
,study material
,Semester Notes
,Viva Questions
,Free
,Previous Year Questions with Solutions
,Sample Paper
,practice quizzes
,ppt
,past year papers
,video lectures
,Indian Financial system Video Lecture | Indian Financial System - B Com
,Non Performing Assets - Indian Banking System
,Important questions
,Indian Financial system Video Lecture | Indian Financial System - B Com
,shortcuts and tricks
,mock tests for examination
,Extra Questions
,Non Performing Assets - Indian Banking System
,Non Performing Assets - Indian Banking System
,Indian Financial system Video Lecture | Indian Financial System - B Com
;
Study Non Performing Assets - Indian Banking System, Indian Financial system on the App
Students of B Com can study Non Performing Assets - Indian Banking System, Indian Financial system alongwith tests & analysis from the EduRev app,
which will help them while preparing for their exam. Apart from the Non Performing Assets - Indian Banking System, Indian Financial system,
students can also utilize the EduRev App for other study materials such as previous year question papers, syllabus, important questions, etc.
The EduRev App will make your learning easier as you can access it from anywhere you want.
The content of Non Performing Assets - Indian Banking System, Indian Financial system is prepared as per the latest B Com syllabus.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup