NPA
Non-Performing Asset
Credit & DebtA loan on which interest or principal has remained overdue for more than 90 days. Banks must classify such loans separately and provide against expected losses.
Formula
Gross NPA Ratio = Gross NPAs / Total Advances
Why it matters
NPA ratios are the headline health metric for banks. Rising NPAs eat capital through provisions and constrain new lending.
Indian example
Related terms
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