Mains Paper 3: Economy | Growth
From UPSC perspective, the following things are important:
Prelims level: Non-performing assets (NPAs), Sensex
Mains level: Not much
- Stock markets on Friday fell for a fifth session, taking the Sensex down by another 317 points as State Bank of India plunged 5.36 per cent after it reported a rise in non-performing assets (NPAs) and investors continued to fret over rising US-North Korea tensions.
- Economic Survey said achieving the high end of the 75-7.5 per cent growth projected previously will be difficult and called for more interest rate cuts to boost the economy.
Reasons behind the fall
- Weakening global risk appetite in the wake of US-North Korea tension.
- Weakness in the rupee against the American currency and lacklustre global shares growth.
- A nonperforming asset (NPA) refers to a classification for loanson the books offinancial institutions that are in default or are in arrears on scheduled paymentsof principal or interest.
- In most cases, debtis classified as nonperforming whenloan payments have not been made for a period of 90 days.