What is the full form of NPA?

NPA stands for Non-Performing Asset(s).

Short Form NPA
Full Form Non-Performing Asset(s)
Category Business » Banking
Country Worldwide
Popularity
Type Unknown

What is NPA?

A Non-Performing Asset is an asset that has been assessed by a lender or financial institution as being impaired, and therefore is not producing the expected returns.

An NPA can be caused by a number of factors, including economic conditions, bad debt levels, and competition from new competitors.

When an NPA is detected, lenders typically try to work with the borrower to get them back on track. If the borrower is unable or unwilling to repay the loan, then the lender may declare the loan to be in default and start proceedings to seize the assets.

There are a number of steps that lenders take when assessing an NPA. These steps include performing detailed financial analysis, speaking with the borrower, and conducting interviews with key stakeholders.

By understanding what an NPA is and how it affects borrowers and lenders, you can better understand how this process works.