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NPA Full Form

What is the Full Form of NPA?

The full form of NPA is Non-Performing Asset.

A loan becomes an NPA when the borrower stops paying EMIs for over 90 days. The bank must classify it as a dead asset because it no longer generates interest income. Too many of these on a bank's balance sheet will absolutely ruin its stock price. You’ll hear this term often regarding government-owned (PSU) banks that issued massive corporate loans, which eventually went bad.

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