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What is NPA

Pankaj (Manager) (295 Points)

17 January 2011

Hi,

Please any one explain me , what is NPA ? & what is criteria of NPA.

Also what is formalities of NPA

REGARDS

PANKAJ SONAR

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19 Replies

NUKUL GARG (Senior Associate Consultant) (1231 Points)
Replied 17 January 2011

NPA-are Non Performing Assets in a bank.

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Suresh (Service) (91 Points)
Replied 17 January 2011

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

1 Like

Om Prakash Regmi (Subject Matter Expert) (582 Points)
Replied 17 January 2011

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

CA Manikandan Raghunath ( ) (609 Points)
Replied 17 January 2011

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

Sonam Bidasaria (CA) (770 Points)
Replied 17 January 2011

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.

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(Guest)

Management of Non-Performing Assets

Attached File : 44 management of non performing assets.pps downloaded: 395 times

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CA Shammi Prabhakar (Managing Director) (2076 Points)
Replied 18 January 2011

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.

Rohit (Article) (113 Points)
Replied 18 January 2011

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

nandini mishra (individual) (592 Points)
Replied 18 January 2011

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.

Smruti (CA) (183 Points)
Replied 18 January 2011

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%

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vinayak (article clerk) (62 Points)
Replied 18 January 2011

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.

Manjul Soni. (CA Student.) (1407 Points)
Replied 18 January 2011

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

K sunil kumar (articlee trainee) (21 Points)
Replied 18 January 2011

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

(Guest)

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%