question_answer

The Banking Industry a few years back was badly in the grip of Non-Performing Assets (bad loans) for which the RBI and banks took special measures. As per the latest financial reports of the industry/ what is the status of NPAs at present? [OBC 2008]

(1) There are no NPAs now as not a single loan of ` 5 lakhs and above is given by the bank without proper paperwork.

(2) As reported in the first half of 2007 the NPAs have again risen.

(3) As the interest rates are very high banks are not providing loans to middle class and poor general borrowers. Hence NPAs in private and personal banking area are 'zero' where as in industrial credit sector NPAs are still at the level of 22 percent.

A)  Only (1) is correct

B)  Only (2) is correct

C)  Both (1) and (2) are correct

D)  Only (3) is correct

E)  None of these