Question

In banking sector GNPA refers to?

• A. Gross Non‐performing Advances
• B. Gross National Performing Assets
• C. Gross National Productive Assets
• D. Gratuitous Non‐performing Advances

Answer 1

The Correct Option is A

The question asks about the full form of GNPA in the banking sector. To answer this, let's look at the meaning of each option:

1. Gross Non‐performing Advances: In banking terminology, "advances" refer to the loans provided by banks. A "non-performing advance" indicates a loan where the borrower has failed to make required payments for a specified period. Therefore, "Gross Non‐performing Advances" refers to the total value of loans that are in default or close to being in default.
2. Gross National Performing Assets: This term is incorrect because it implies a collection of assets that are performing well, contradicting the 'non-performing' aspect of GNPA.
3. Gross National Productive Assets: This option is misleading because "GNPA" typically deals with non-performing assets, not productive ones.
4. Gratuitous Non‐performing Advances: Gratuitous means something done without charge or payment which does not relate to the concept of advances or loans, thus making this option incorrect.

After analyzing all the options, the most accurate full form of GNPA is "Gross Non‐performing Advances." This term is widely used in the banking sector to denote the total sum of loans that are in default or nearly in default, impacting the bank's financial health.

Therefore, the correct answer is Gross Non‐performing Advances.