A non-performing asset is a loan for which the interest and\/ or instalment of principal has remained \u2018past due\u2019 for a specified period of time. According to RBI, a non-performing asset (NPA) shall be a loan or an advance where;
\n1) interest and\/ or instalment of principal remain overdue for a period of more than 90 days in respect of a term loan,
\n2) the account remains \u2018out of order\u2019 for a period of more than 90 days, in respect of an Overdraft\/Cash Credit (OD\/CC),
\n3) the bill remains overdue for a period of more than 90 days in the case of bills purchased and discounted,
\n4) interest and\/or instalment of principal remains overdue for two harvest seasons but for a period not exceeding two half years in the case of an advance granted for agricultural purposes, and
\n5) any amount to be received remains overdue for a period of more than 90 days in respect of other accounts.<\/p>\n
NPAs can be further classified into:
\nSubstandard assets: NPA for a period less than or equal to 18 months.
\nDoubtful assets: NPA for a period exceeding 18 months.
\nLoss assets: A loss asset is one where loss has been identified by the bank or internal or external auditors or the RBI inspection but the amount has not been written off wholly.<\/p>\n","protected":false},"excerpt":{"rendered":"
A non-performing asset is a loan for which the interest and\/ or instalment of principal has remained \u2018past due\u2019 for a specified period of time. According to RBI, a non-performing asset (NPA) shall be a loan or an advance where; 1) interest and\/ or instalment of principal remain overdue for a period of more than… Continue reading Non Performing Assets (NPA)<\/span><\/a><\/p>\n","protected":false},"author":10350,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"class_list":["post-233001","page","type-page","status-publish","hentry","entry"],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/233001","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10350"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=233001"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/233001\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=233001"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}