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Macronomics: How Banks Resolve NPAs, And Why You Shouldn't Rush to Buy Bhushan Steel or Ballarpur

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In Macro today, we'll speak a little bit about the problems with the banking system, and how the recent steps to force resolution are likely to impact banks and companies who are defaulters. First, The NPA problem A Non-Performing Asset is simply a loan where the borrower hasn't paid interest or principal that was due, for three months or longer. For banks, it means that they can no longer take into account any further interest on the loan (once it's NPA). And, they have to provision against that loan, for the fear that they won't . . .

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