Interesting Facts I Bet You Never Knew About NPA

Non Performing Assets (NPA)

An asset, including a leased asset, becomes non performing when it ceases to generate income for the bank.¬† If one account of the borrower in the bank becomes NPA in one branch, then all accounts of that borrower in other branches of the same bank also are classified as NPA. Thus classification as NPA is done borrower wise and not account wise. In all NPA accounts, provision is to be made on the basis of asset classification.Read More »


What Is working capital and How Does It Work?

Working capital finance is business finance to boost the working capital available to a business. For an uninterrupted functioning at a given capacity a firm requires a minimum level of current assets. Working capital & Net working Capital Working capital refers to the amount of total current assets.Read More »

Financial Inclusion

Everything You Wanted to Know About financial inclusion

Financial inclusion may be defined as the process of ensuring access to financial services and timely and adequate credit where needed by vulnerable groups such as weaker sections and low income groups at an affordable cost.

Financial Inclusion, broadly defined, refers to universal access to a wide range of financial services at a reasonable cost. These include not only banking products but also other financial services such as insurance and equity products.Read More »

Securities For a Loan


The banks provide loans and advances against securities, so that in case of non-payment, these can be enforced to recover their dues. These securities can be classified into following different categories based on the nature and individual characteristics:

Primary securities are those securities or assets which are created with the help of finance made available by the bank. For instance, the machinery purchased out of loan made available for purchase of machinery by the bank is a form of primary security.

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What is BASEL Norms in banking

Meaning of Basel Norms:

  • BASEL ACCORD has given us three BASEL NORMS which are BASEL 1,2 and 3.
  • The purpose of the accord is to ensure that financial institutions have enough capital on account to meet the obligations and absorb unexpected losses.
  • The set of the agreement by the BCBS (BASEL COMMITTEE ON BANKING SUPERVISION), which mainly focuses on risks to banks and the financial system are called Basel accord.

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Types of customers for a bank Part 2

Accounts for partnership firms and LLPs are discussed in this post, which are one of the most important for a banker to understand the main differences between them and their norms to open a bank account. This post is in continuation with my previous post on types of customers for a bank.

Accounts for Partnership Firms:

Partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all.Read More »

Types of customers for a bank Part 1

Banks offers a variety of accounts to its customers starting from minor accounts, mandate holders, accounts for illiterates, blind people, partnership firms, LLPs and so on. In this article, let us look at the different types of accounts that a bank offers to its customers having different requirements and its features.

Bank accounts for Minors

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