Consider the following statements about causes of NPAs ndash 1 Deficiency in credit a...........

Economic Affairs Types of Banks and Banking

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Consider the following statements about causes of NPAs –

1. Deficiency in credit appraisal and improper due diligence.

2. Global crisis leading to low demand.

3. Lack of quality of human resource in banks.

4. Early completion of projects.

Which of the statements given above is/are correct?

1, 2, and 3 only

3 and 4 only

4 only

1, 2, 3 and 4

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Explanation:

Not early completion of projects but instead delayed project completion resulted in increasing NPAs. Lack of quality of human resource in banks means not efficient monitoring of loans given which resulted in diversion of funds by borrowers for other purposes.