So many terminologies in Banking!
Confused?😥🤔
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A thread🧵 on basics of Banking
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Types of banks:-
Your money should be parked in scheduled commercial Banks
Scheduled Commercial Banks
-PSU Banks
-Private Banks
-Foreign Banks
-Small Finance Banks
Do not park money is Co-operative/Regional Banks
List is shown below
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NPA, NPA, NPA! Kya hain yeh NPA?🤔
Gross NPA (GNPA)-
It is the total loans on which no payment has been paid for 90 days or more.
GNPA % is usually shown in each Bank’s quarterly results. The percentage is basically the GNPA amount as a % of the total advances.
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Net NPA (NNPA)-
The total figure left after deducting provisions made for bad loans from GNPA.
(GNPA – Provisions+upgrades/writeoffs = NNPA)
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Special Mention Account (SMA) –
SMA-0
SMA-0 is a category in which stress with respect to the principal and interest has remained overdue for a period of 0 to 30 days.
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