What is a Non-performing asset (NPA)?

A non-performing asset (NPA) is a loan on which no principal or interest payments have been received in over 90 days.

When a bank reports a loan as nonperforming, it will indicate that the bank is having difficulty recovering the funds it has loaned out.

To some extent, every bank has a nonperforming asset (NPA). When the NPA rises above a certain threshold, the bank’s company and life will be jeopardised.

Banks that hold their nonperforming assets (NPA) low are regarded as successful banks and are sought after for investment.

What is a Non-performing asset (NPA)?
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