Meaning
NPA full form is Non-Performing Asset. NPA refers to a loan or advance where the borrower has not paid interest or principal for a specific period.
Definition
Banks classify an asset as NPA when payments remain overdue for more than 90 days.
Types of NPA
- Substandard
- Doubtful
- Loss assets
Why It Matters
NPAs affect a bank’s profitability and increase financial risk.
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