NPA Explained for UPSC and Banking Exams (Part 1): SMA, Ratios, Twin Balance Sheet

In March 2018, more than 11% of bank loans in India had turned bad. By June 2026, the gross NPA ratio is reported at about 1.8%. In Part 1 of this two-part series, I explain NPAs from scratch for UPSC, SSC, Banking and State PCS exams. ⏱ Timestamps 0:00 Hook: 11% to 1.8% 0:45 What is an NPA? SMA-0, SMA-1, SMA-2 2:15 Classification and provisioning 3:45 Key ratios: gross NPA, net NPA, PCR, slippage 5:00 Why the NPA crisis happened 6:45 The policy response 8:15 Where we stand now 9:15 Quick revision 📝 Mains practice question: Explain the twin balance sheet problem and discuss how India addressed it. Write your answer in the comments and I will review the best ones. Figures are from RBI Financial Stability Report coverage. Please verify them against the RBI's reports before using them in your answers. #upsc #currentaffairs #rrb #ssc #indianeconomy #railwayexams #currentaffairs2026 #indianrailways #economy #officer