NON-PERFORMING ASSESTS (NPA): An asset including a leased asset, becomes an NPA when itceases to generate income for the bank. An NPA is a loan or anadvance where:
The interest and/or instalment of principal remain overdue fora period of more than ninety days in respect of a term loan.
An account remains
of orders, in respect of an overdraft/cash credit( OD/CC).
A bill remains overdue for a period of more than ninety days ,in the case of bills purchased and discounted.
An instalment of the principal or the interest thereon remainsoverdue for two crop seasons for short duration crops
An instalment of the principal or the interest thereon remainsoverdue for one crop season for long duration crops.