Glossary
/NPA Full Form
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.