What is NPA

NPA-are Non Performing Assets in a bank.

NPA represents Non Performance Assets.  As per RBI guidelines the assets will be bifurcated as Standard, Sub-standard and N P A.  When an customer pledged any assets against advances and he could not able to re-pay either principal or interest for 1 years it is identified as NPA

NPA is non-performimg asset. That means when there is principal or interest due for 3 or more quarters then the particular asset i.e loans and advances is to be treated as NPA

NPA stands for Non-Performing Asset

When the principal and interest is outstanding for more than 90 days, then the account need to be classified as an NPA

NPA is a Non Performing Assets. When any loan and interest get ur but remain unpaid for more than 90 days from its schedule date of repayment, then it will be classified as NPA.

Once an account is classified as NPA, no income should be recognised on such account until, the account is re-classified as Non-NPA.

Management of Non-Performing Assets

As per stat. guidelines, Assets has to be classified in  Standard, sub standard, NPA and Loss asset. as per their performance. NPA represents a debt which may result in non recovery. but it's based oo only  probability of non recovery. it may be recovered. whenever a borrower do not repay his dues (principal/interest/both) for a specified period (90 days), he shall be classified as NPA  by lender.

As per RBI guidelines, bank and Financial inst. required to make provisions against such NPA and they have to show it seperately in every fin. report.  NPA plays an essential role in determining the performance of a co.

Non-Performing Asset (NPA): An asset becomes NPA when it ceases to generate income for the bank..

you can read my article on banks NPA and impact on indian economy. specially written for your knowledge purpose after reading this you can ask question to me.

NPA are non performing assets in a bank.when an asset ceases to generate income that is classified as NPA. When any loan and interest get ur but remain unpaid for more than 90 days from its schedule date of repayment, then it will be classified as NPA.the purpose of such classification is to make provision on the basic of such classification.

NPA is again classified as standard, sub standard, doubtful and loss asset

Provisioning of NPA

1. Standard asset- .4%

2. Sub standard- 10%

3. Doubtful-

i) Upto 1yr- 100% of unsecured and 20% of secured

ii)  1 yr to 3 yr- 100% of unsecured and 30% of secured

iii) more than 3 yr- 100% of unsecured and 100% of secured

4. Loss asset- 100%

NPA means Non Performing Assets. In case of Bnaks Loans, Bank O/D etc, which are not recoverable or doubtful to recover called as NPA.

Non performing asset  Which is idle For Bank..........

NPA means  Non Peforming Asset.. i. e

An asset which is not generating any income (both principle and interest)  over a period of 90 days from the due date

Originally posted by : yagyanseni
	NPA are non performing assets in a bank.when an asset ceases to generate income that is classified as NPA. When any loan and interest get ur but remain unpaid for more than 90 days from its schedule date of repayment, then it will be classified as NPA.the purpose of such classification is to make provision on the basic of such classification. NPA is again classified as standard, sub standard, doubtful and loss asset Provisioning of NPA 1. Standard asset- .4% 2. Sub standard- 10% 3. Doubtful- i) Upto 1yr- 100% of unsecured and 20% of secured ii)  1 yr to 3 yr- 100% of unsecured and 30% of secured iii) more than 3 yr- 100% of unsecured and 100% of secured 4. Loss asset- 100%

jst read p.c.tulsian for rest ..u'll clearly understand