Non Performing Assets (NPA) meaning in banking are those assets that are considered nonperforming when the borrower fails to make timely payments of principal and interest for a specified period, usually 90 days or more. NPAs indicate a higher risk of default and financial instability. 

They can include various types of loans such as personal loans, business loans, mortgages, and credit card debt. Banks strive to minimize NPAs as they impact profitability and require provisioning for potential losses.

Non performing assets are recorded on the balance sheet of banks and financial institutions. When borrowers consistently fail to make loan payments, the lenders take steps to recover the outstanding debt. If the borrower had pledged assets as collateral, the lender may seize and sell those assets to recover the amount owed. In cases where no collateral was pledged, the lender may classify the loan as a bad debt and sell it to a collection agency at a discounted price.

The classification of a loan as an Non Performing Asset is typically based on the duration of non-payment, which is commonly set at 90 days. However, this timeframe may vary depending on the terms of the loan. It’s important to note that an NPA can be identified at any point during the loan’s term or even at its maturity.

This project  won the The Minsky Awards for Excellence in AI 2023 named Outstanding AI Product by a Domestic Indian Firm 

I have done this for 

• Loan Against Security and Gold Loan (LAS GL)

• DLOD

• EEG BBG

• Wholesale

• Kisaan Gold Credits (KGC)