Non-Performing Assets (NPA)

Non-Performing Assets (NPA)

A Non-performing asset (NPA) is a loan account where the interest and/or principal have remained overdue for a period of 90 days or more. Bills purchased and discounted which remain overdue for a period of 90 days or more are also classified as NPA. NPA also includes Overdraft/Cash Credit account which remain ‘out of order’ i.e. the outstanding balance remains continuously in excess of the sanctioned limit for 90 days or where the overdrawn balance is less than the sanctioned limit but no money has been credited in the account continuously for 90 days as on the balance sheet date.