Banks are required to classify Non-Performing Assets into

Doubtful assets, bad debts and loss assets Standard assets, and sub-standard assets Sub-standard assets, doubtful assets, and loss assets Doubtful assets, and bad debts Answer 3. Sub-standard assets, doubtful assets, and loss assets Explanation Banks are required to classify Non-Performing Assets into Sub-standard assets, doubtful assets, and loss assets. With effect from 31 March 2005, a sub­standard asset would be Read More …

Merits and Demerits of Government securities

MERITS OF GOVERNMENT SECURITIES : Zero risk: Government securities are free from any risk as there are no chances of default and government assures payment of principal along with interest. interest is paid regularly: in government bonds interest is paid at regular intervals generally half yearly or quarterly. Liquidity: government securities can be bought and sold regularly and can be instantly converted Read More …