What is non performance account in banks ?

The term NPA refers to Non-Performing asset.  this means that if any asset say a loan given by an bank to the customer whihc was generating to income to the bank in the form of interest, stops generating income to the bank for a period of mor than 90 days, then such asset is called as an Non-Perofrming asset.

the term non performing is being used, as the asset stops genrating income to the bank by way of asset, which means it does not perform hence the name non-performing is being used.

Please refer the link below for more information:

/articles/banks-npa-and-impact-on-indian-economy-8146.asp

NPA -  Non performing asset which overdue for more then 90days, from which bank is unable to generate income. That means a borrower fails to pay the interest and principal amount on his borrowings on due date exceeding 90days is known as NPA.

As when he fulfills the obligation the interest income (for bank) is booked on cash basis and not accrual basis.