NPAs result from what are termed “Bad Loans” or defaults. Default, in the financial phrasing, is the failure to encounter financial duties, say non-payment of a loan installment. A NPA is defined as a praise facility in admiration of which the attention and/or installment of Bond finance principal has remained ‘past due’ for a quantified dated of time. NPA is used by financial institutions that refer to loans that are in jeopardy of default.
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