Question
What is the difference between a non-performing asset
(NPA) and a stressed asset in India?Solution
The main difference between a non-performing asset (NPA) and a stressed asset in India is that NPAs are loans that have defaulted on repayment, while stressed assets are loans that are at risk of defaulting. An NPA is a loan where the principal or interest payment is overdue for more than 90 days, while a stressed asset is a loan where there is a likelihood of the borrower defaulting on payment due to various factors such as financial distress, change in management, or regulatory issues, among others. Therefore, option D is correct.
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Mark the correct statement_______
