NPA (Non-Performing Asset)

A loan on which the borrower has stopped paying interest or principal for 90+ days.

A Non-Performing Asset is a loan or advance for which the principal or interest payment has remained overdue for 90 days or more. High NPAs erode a bank's profitability and capital, which is why credit appraisal, monitoring and recovery (via SARFAESI, DRT, etc.) are core banking skills.