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Abstract
Asset Quality is one of the important aspect of the evaluation of a bank’s performance. The main motive in measuring asset quality is to know the proportion of return on assets as a percentage and the amount locked up in investments as a percentage of the total assets. The quality of assets is an important parameter or component to measure the financial strength of the bank. Total investments to total assets indicate the extent of deployment of assets in investment as against advances (Total Assets). A higher ratio indicates that the bank has conservatively kept a high cushion of investment to guard against probable NPAs.