Challenger App

No.1 PSC Learning App

1M+ Downloads
Which among the following statements is true regarding Non-Performing Assets (NPAs) in commercial banks?

ANPAs reduce a bank’s profitability and capital base

BNPAs increase the bank’s lending capacity

CNPAs are assets that earn maximum interest for banks

DNPAs do not affect bank’s liquidity

Answer:

A. NPAs reduce a bank’s profitability and capital base

Read Explanation:

.


Related Questions:

Which of the following statements about Local Area Banks (LABs) is correct?
In the case of life insurance HLV refers to ....
What is the minimum paid-up capital required for a Local Area Bank as per RBI’s rules?
ECS refers to ----
Loans given on the surety of immovable property is?