Of late we are hearing frequently about banking NPA's.In the
banking parlance,Loans are assets which should perform so
that repayment to the banks are regular.For a layman,asset
is an asset whether it performs or not.Assets can be current assets
like stocks,receivables & which can be liquidated at short notice.
There can also be assets like Building,factory,and also machineries,
which can be called as Fixed assets.
Hence, the question arises,who is responssible for the assets to
non perform? Is it the promoters.Management,employees, Banks,
or the markets they operate?To this,the answer is clearly the promoters
as they control/Manage the companies.
In this context ,is it correct to call it as Non Performing Loan instead
of Non Performing Asset ?