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.
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