What are Stressed Assets?

Stressed Assets

Stressed assets are a sum of Non-performing assets, restructured loans, and written-off assets. During the period of 90 days before becoming non-performing assets, these are called ‘stressed assets.’ There has been a major rise in the percentage of stressed assets or non-performing assets (NPAs) in the banking industry recently. Mismanagement, misgovernance, and other factors could be to blame.

• Bank assets include loans made to individuals and investments made by the bank.
• Stressed assets fall under the purview of bank loans.
• The Indian banking sector faces economic risks as the number of stressed assets in these institutions grows.
• People and customers are interested in learning more about NPAs and stressed assets at banks.
• It aids in understanding the bank’s financial situation.
• This formula can be used to understand bank-stressed assets- NPAs + restructured loans + written-off assets = stressed assets

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