11 June 2009
In the banks balance sheets, the advances which were mentioned are Gross Advances or Net Advances? Definition of net advances is Gross advances – gross NPA.
11 June 2009
It is always gross advances only. In case of NPAs there is a classification into Standard, sub-standard, Doubtful and Loss assets along with a provision for loss on the basis of such classification.
11 June 2009
I agree with Mr. Rameshkumar. Creating NPA provision doesnt mean that the Advances given are not recoverable. NPA provision is made on the advances pending for more than 90 days to show the correct financial position of the Bank.Hence, Gross advances are shown in the Balance sheet.
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