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In banking, NPA means

  • A.No promise Account
  • B.New Performing Asset
  • C.Non Performing Asset
  • D.Non Personal Account

Answer: C

Correct answer: Non Performing Asset

An NPA is a loan on which interest or principal has been overdue for more than 90 days, so it has stopped generating income for the bank. Classifying it as such forces the bank to make provisions against it, which is why the level of NPAs is such a closely watched measure of banking health.

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