Trends in NPAs of the Scheduled Commercial Banks in India

Non Performing Asset or Non Performing Loan is defined as a credit facility in respect of which the interest and/or installment of Bond finance principal has remained 'past due' for a specified period of time, presently 90 days. NPAs are problematic for financial institutions since they depend on interest payments for income. NPAs will eat the profits of the Financial Institutions. Huge NPAs may lead to closure of the Financial Institution. If they are not managed properly, can crash the Economic system. Hence due care and attention should be given to NPA Management.