NPA is defined as a credit facility in respect of which the interest and/or installment of principle has remained past due for a specified period of time.
An assest including a leased asse, becomes non-performing when it ceases to generate income of the bank. In accounting originally bad and doubtful debt.
FOR AGRICULTURE PURPOS:-
Interest or installment of principle remains overdue for two harvest seasons but for a period not exceeding two and a half years in the casae of an advance granted for agriculture purpose.
Any amount to be received remains overdue for a period of more than 90 days in respect of other accounts.
Earlier it was more than 3% of total assets and now it is 0.06%.
OUT OF ORDER:-An account should be treated as out of order if the outstanding balance remains continuously in excess of sanctioned limit drawing power.
OVERDUE:-Any amount due to the bank under any credit facility is overdue if it is not paid on due date fixed by the bank.
NET NPA:- Nt NPA are those type of NPA's in which the bank has deducted the provision regarding NPA's.Net NPA shows the actual burden of bank's.
An asset including a leased asset becomes non performing when it ceases to generate income for the bank.
