The quality of assets is an important parameter to gauge the degree of financial strength. The prime motto behind measuring the assets quality is to ascertain the components of Non-Performing Assets (NPAs) as a percentage of the total assets. This indicates what types of advances the financial institution has made to generate interest income. The advances of a financial institution are to be disclosed in a classified manner as: Standard, sub-standard and doubtful and loss assets.

KEYWORDS: Financial Strength, Non-Performing Assets (NPAs), Financial Institution.