Top Financial Terms You Must Know! Shares, Debentures, NPAs (Series 4)
By understanding various financial terms and the mechanism in which it functions, one can reach great heights. Finance is a vast subject which has several branches.
non performing assets
What Are NPAs?-NON Performing Assets: Ultimate Meaning, Classification, Reasons, Impact
NPA stands for Non-performing Asset which is any advance or loan that is overdue for more than 90 days.
All the advances and loans sanctioned by financial institutions are considered to be ‘assets’ as they are capable of earning revenue for the lender by the way of generating interest income. However, things do not always work out as planned, a loan is considered bad when it is unable to generate interest, non-payment of principle and doesn’t serve its purpose.