Non-Performing Asset. A loan or advance where the borrower has stopped making interest or principal payments. A key metric for evaluating banking stocks.
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Indian MarketsFundamental Analysis
Related terms
BSE
Bombay Stock Exchange. India's oldest stock exchange, established in 1875, located in Mumbai. Its benchmark index is the Sensex.
Book Value
The net asset value of a company, calculated as total assets minus intangible assets and liabilities, divided by number of outstanding shares.
Brokerage
The commission or fee charged by a broker for executing buy or sell orders. Discount brokers in India typically charge flat fees (e.g., Rs 20 per order) or zero for delivery trades.
CAGR
Compound Annual Growth Rate. The annualized rate of return that smooths out volatility, showing how an investment would have grown if it grew at a steady rate.
CRR
Cash Reserve Ratio. The percentage of deposits that banks must keep with the RBI as liquid cash. Changes in CRR affect liquidity in the banking system and indirectly impact stock markets.
Circuit Breaker
A mechanism that temporarily halts trading on a stock or the entire market when prices move beyond specified limits (upper or lower circuit). SEBI sets these limits to prevent extreme volatility.