Credit Risk

How banks assess risk, what NPAs are, and how credit risk affects lending decisions.

10 issues

What Is NPA?

Understand what a Non-Performing Asset is, when a loan becomes NPA and why it matters to banks and borrowers.

Learn how Special Mention Accounts act as early warning signals before a stressed loan becomes an NPA.

Follow the journey from a regular loan account through repayment stress and SMA stages to NPA classification.

Explore why stronger industrial credit can signal investment, infrastructure growth and expansion in productive sectors.

Understand why slower credit-card growth can sometimes reflect stronger underwriting and more disciplined lending.

Understand how collateral changes lender risk, pricing, eligibility and borrowing structure.

Learn what a loan write-off means in bank accounting and why it does not automatically erase a borrower's repayment obligation.

Understand the difference between an accounting write-off and the continuing process of loan recovery.

Understand what a CIBIL score represents and how lenders use credit history as part of borrower assessment.

Learn how banks assess repayment capacity, credit history, income, obligations and available security before making a lending decision.