......RBI had of late, regulated the process of recognizing NPAs. Instead of doing manually, most banks now identify bad loans through computer generated system. An asset turns into NPA when a loan account stops repaying interest for 90 days. Despite this core banking solution, many industry experts believe, banks still have a room for hiding NPAs. They resort to certain adjustments so that some NPAs do not reflect in their books of accounts especially at the quarter-end. For example, bank managers can coax borrowers to make some payment at the end of every quarter, which will then be reversed the next day............
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