Answer Posted / vivek verma
In banking, NPA are loans given to doubtful customers who
may or may not repay the loan on time. There are two types
of assets viz.,performing and non-performing. Performing
loans are standard loans on which both the principle and
interest are secured and their return is guaranteed.
Non- Performing Asset[ NPA] is a a result of asset
liability mismatch.A NPA account in the books of accounts
is an asset as it indicates the amount receivable from the
defaulters
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