Posts tagged ‘Non Performing Assets’

November 11, 2011

Standard & Poor’s Upgrades Indian Banking Sector Contrary to Moody’s Downgrades

The downgrade of Indian banking sector from stable to negative by Moody’s shaken the Indian equity market and as result of this downgrade the Indian banking sector stocks faced huge selling pressure and the prices of the stocks of almost every bank fell.

Contrary to the Moody’s downgrade, it’s competitor in rating market today the leading rating company Standards & Poor’s has upgraded the Indian banking sector on the basis of strict and stringent domestic banking regulations and proper enforcement by the Reserve Bank of India.

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September 26, 2011

NPA: Non Performing Assets

Non Performing Asset means an asset or account of borrower, which has been classified by a bank or financial institution as sub-standard, doubtful or loss asset, in accordance with the directions or guidelines relating to asset classification issued by RBI. In simple words the non performing assets are the lending by the bank that bank considers to be defaulted and no future payment will be received. Under the guidelines of RBI, the action for enforcement of security interest can be initiated only if the secured asset is classified as Non Performing Asset. In case of unsecured assets that turn non-performing assets, the bank has very limited options in their hands.

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