NPA Full Form In English
NPA stands for Non-Performing Asset, which is a term commonly used in banking and finance. It refers to a loan or advance where the borrower has stopped making interest or principal repayments for a specified period, typically 90 days. NPAs indicate the financial health of banks and are crucial for assessing credit risk. High levels of NPAs can affect a bank’s profitability and stability.
NPA Full Form In Hindi
NPA का मतलब है नॉन-परफॉर्मिंग एसेट, जो बैंकिंग और वित्त में इस्तेमाल होने वाला शब्द है। यह उस ऋण या उधार को दर्शाता है, जिसमें उधारकर्ता ने निर्धारित अवधि (आमतौर पर 90 दिन) तक ब्याज या मूलधन का भुगतान नहीं किया हो। NPAs से बैंकों की वित्तीय स्थिति का आकलन किया जाता है। NPAs की अधिकता बैंक के लाभ और स्थिरता पर नकारात्मक प्रभाव डाल सकती है।
Read More: OYO Full Form In English And Hindi
Frequently Asked Questions
What is the meaning of NPA?
NPA stands for Non-Performing Asset, which refers to loans or advances where the borrower has stopped repaying interest or principal for a specific period.
How long does a loan need to be overdue to be classified as an NPA?
Typically, a loan is classified as an NPA if payments are overdue for 90 days or more.
Why are NPAs important for banks?
NPAs indicate the financial health of banks. High NPAs reduce profitability and can affect the bank’s ability to lend.
Can NPAs be recovered?
Yes, banks can recover NPAs through negotiations, restructuring, legal action, or selling the asset to a recovery agency.
What causes NPAs?
NPAs can result from poor financial management by borrowers, economic slowdown, or inadequate credit appraisal by banks.
Conclusion
Non-Performing Assets are a critical aspect of banking that reflects the quality of a bank’s loan portfolio. Monitoring and managing NPAs is essential for maintaining financial stability and ensuring that banks continue to lend responsibly. Reducing NPAs helps banks stay profitable and supports overall economic growth.
