What is NPA in Banking & its Full Form?
The full form of NPA is Non-Performing Asset in the banking sector. When a borrower fails to pay instalments or interest for 90 days or more, then a banker declares the loan as an NPA account. It means that the loan stopped generating profit for the bank and is marked for total recovery of the loan. Loans are the highest profit-making products for the banks, but when a loan borrower defaults for 90 days or more, then banks enlist such loans as NPA, and move for the recovery of the entire loan, through the legal process.