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  • or serviced through interest payments on time -- in a bank.For a bank, a loan that it gives out is an 'asset' since it earns revenue, while a deposit is a 'liability' because it has to be repaid at some point in time.According to the Reserve Bank of India, an asset or loan becomes 'non-performing' or bad when it has not been serviced -- meaning, the interest and/or installment of principal has re
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