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Comments ( 2 )

  1. […] In my last article, I explained about NPAs and bad loans. In that context, I mentioned about PCA framework, which is a type of risk management framework. To understand this, first of all, we have to get familiar with the concept of risks and their management. […]

  2. […] if I lose Rs 50 on those loans because some fellow defaulted (5% NPA) then my loss hits my capital. My capital falls to Rs […]

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