Question : Which of the following is not a type of non-performing asset (NPA)?
Option 1: Substandard assets
Option 2: Standard assets
Option 3: Doubtful assets
Option 4: Loss assets
Correct Answer: Standard assets
Solution : The correct answer is (b). Standard assets
Non-performing assets (NPAs) are loans or advances that have stopped generating income for the lender, typically due to the borrower's default or inability to make timely payments. NPAs are categorized based on their level of impairment.
Standard assets are loans or advances that are not classified as NPAs. These assets are performing well and the borrower is making timely payments of principal and interest. They do not exhibit signs of financial distress or default.
