Understanding Non-Performing Assets (NPAs) and Why They Are a Major Concern for Indian Banks, Financ
NPAs are loans or advances where the borrower has stopped paying interest or principal for 90 days or more. In simple terms, it means the bank is not getting its money back.
NPAs hurt a bank’s profitability and create financial stress. When banks give loans and don’t recover them, it affects their ability to lend more.
In India, NPAs have been a big issue, especially in public sector banks. Sectors like infrastructure, power, and real estate have contributed to many defaults.