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#1
13th December 2006, 12:35 PM
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NPA of Banks
Hi Traderji,
I have a confusion please answer my question? When we talk about NPA of a Bank can a bank's health be judged by that or if an NPA percentage of a bank is increasing year after year does that have an impact on its earning?? any views. comments are also welcomed by members who can throw light on this. Regards, Zeal 
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#2
14th December 2006, 02:39 PM
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Re: NPA of Banks
Quote:
The increase in NPA figures year after year indicates that more of the loans are turning bad/doubtful and thus the bank will not be able to recognise any due but unpaid interest on those loans. This may bring down the earnings in gross term and will certainly bring down the ROI ratio. Best Regards, --Ashish
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