What is Non Performing Assets (NPA)?

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There may often be times when a borrower fails to pay back the bank's money. Such loans are classified as a Non-Performing Asset (NPA). So, NPAs represent all the bad loans in a bank's book.

Since loans are a key source of income for banks, rise in NPAs is bad news for banks. Higher the NPAs, greater is the bank's loss. However, Indian banks have a seen a rise in bad loans due to the slowdown in the economy.

You can have a look at Bank NPA here.

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