An asset becomes non-performing when it ceases to generate income for the bank. A ‘non performing asset’ (NPA) was defined as a credit facility in respect of which the interest and/ or installment of principal has remained ‘past due’ for a specified period of time.
The important assets of banks are:
The NPA deals with loans and Advances.
A non-performing asset (NPA) is a loan or an advance where:
Banks are required to classify nonperforming assets into the following three categories based on the period for which the asset has remained non-performing and the realisability of the dues:
We hope you liked this article on Non Performing Asset. Here are some useful for you to read next:
Download this article as PDF
Click to go to RBI Grade B Preparation Page
June – 2020 Edition
May – 2020 Edition
April – 2020 Edition
March – 2020 Edition
February – 2020 Edition
January – 2020 Edition
December – 2019 Edition
Punjab Civil Services 2020