Npa

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13 April 2012 What is NPA and please explain with example.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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13 April 2012 NPA: Non Performing Asset means an asset or account of borrower, which has been classified by a bank or financial institution as sub-standard, doubtful or loss asset, in accordance with the directions or guidelines relating to asset classification issued by The Reserve Bank of India.

An asset becomes non-performing when it ceases to generate income for the bank on actual realization basis.

For more check out below link---

http://kalyan-city.blogspot.in/2011/07/non-performing-assets-npa-meaning-types.html