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What are non performing assets in banking?
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Answer Posted / zahoor ahmad malik
Non Performing assets, we mean those assets which either do
not generate any income in terms of interest or remains
uncovered.When a banker grants a debt to any party on certain
terms and conditions regarding to the repayment of principal
amount and periodic payment of interest on such debt, due to
some reasons (Internal and External)become insolvent and hence
the debt remains unpaid to the banker for a long period of
time which affects the liquidity position of the
bank.Therefore a proper management must be exercised on such
assets as it is the main source of recession in any country
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