What are NPAs, and why do they matter for banks & investors?
Non-Performing Assets (NPAs) are loans where borrowers stop paying for over 90 days and they signal a bank’s asset quality and risk level. Gross NPA shows total bad loans, while net NPA accounts for provisions. A lower net NPA means stronger financial health. RBI’s Special Mention Accounts (SMA) categories and provisioning help banks manage and limit credit stress.