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    Question

    What is the basic difference between Gross NPA and Net NPA?

    I- Gross NPA is the total of Bank loans and Net NPA is the total of all kinds of loans including credit cards of a particular borrower.

    II- Gross NPA refers to the sum of all the loans that have been defaulted by the borrower and net NPA is the amount that results after deducting provision for unpaid debts from gross NPA

    III- Gross NPA refers to the sum of all the loans that have been defaulted by the borrower and Net NPA is when we deduct inflation from the Gross amount

    A Only I Correct Answer Incorrect Answer
    B Only II Correct Answer Incorrect Answer
    C I & II Correct Answer Incorrect Answer
    D I & III Correct Answer Incorrect Answer
    E all of the above Correct Answer Incorrect Answer

    Solution

    Gross non-performing assets refer to the sum of all the loans that have been defaulted by the borrowers within the provided period of ninety days while net non-performing assets are the amount that results after deducting provision for unpaid debts from gross NPA.

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