The full form of NPA is _______ 

Key Points

• The full form of NPA is Non-Performing Assets.
• NPAs are loans or advances for which the principal or interest payment remained overdue for a period of 90 days.
• In the banking sector, NPAs are considered a critical issue as they affect the profitability and liquidity of banks.
• Identifying and managing NPAs is crucial for maintaining the financial health of banks.
• Regulatory bodies such as the Reserve Bank of India (RBI) set guidelines for the classification and provisioning of NPAs.

Additional Information

• NPAs can be classified into substandard, doubtful, and loss assets based on the period they remain overdue.
• Effective management of NPAs involves strategies such as loan restructuring, asset reconstruction, and recovery through legal means.
• High levels of NPAs can lead to reduced lending capacity of banks, impacting economic growth.
• Governments and financial institutions often implement measures to reduce NPAs and improve the overall health of the banking sector.