Multiple choice

NPAs mean that the entire amount is not at all recoverable.

  1. True

  2. False

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

NPAs (Non-Performing Assets) are loans where principal or interest payment remains overdue for 90 days or more, not necessarily indicating that the entire amount is unrecoverable. Banks make provisions and continue recovery efforts. Some portion may still be recovered through restructuring, asset sales, or legal action. The statement is too absolute.