What is a Non-Performing Asset?
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NPA refers to a classification for loans or advances that are in default or are in arrears on scheduled payments of principal or interest.
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In most cases, debt is classified as non-performing, when the loan payments have not been made for a minimum period of 90 days.
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Gross non-performing assets are the sum of all the loans that have been defaulted by the individuals who have acquired loans from the financial institution.
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Net non-performing assets are the amount that is realised after provision amount has been deducted from the gross non-performing assets.