NPA (non-performing assets)

Non-Performing Assets (NPAs) are loans or advances made by a bank or financial institution where the borrower has not repaid interest or principal for a certain period, typically 90 days or more. Essentially, NPAs represent bad loans that are not generating income for the bank and may eventually lead to losses. High levels of NPAs indicate financial strain on the bank, affecting its profitability and stability. Managing NPAs is crucial for maintaining the health of a bank's balance sheet and ensuring it can continue lending to others.