The full form of NPA in Urdu is نقصان اٹھانے والے اثاثے (Nuksaan Uthany Wale Asathay), which translates to Non-Performing Assets.
NPA refers to loans or advances that are not being repaid by the borrower as per the agreed terms and conditions. These assets are considered risky and can lead to financial losses for the lender.
Here are some examples of NPAs:
- Loans that are overdue for more than 90 days
- Loans where the borrower has declared bankruptcy
- Loans where the borrower is unable to make payments due to financial difficulties
Understanding NPAs is important for:
- Banks and financial institutions: To assess their financial health and manage risk
- Investors: To make informed decisions about their investments
- The government: To monitor the overall financial health of the economy
