Non Performing Asset

Sam · Posted: Fri Apr 09, 2004 1:07 am Post subject: Non Performing Asset

Non Performing Asset is an asset that is not effectively producing income. It means an asset or account of borrower, which has been classified as:

An asset is called as non-performing asset if:

Interest and installment of principal remain overdue for a period of more than 90 days in respect of a term Loan.
The account remains 'out of order' for a period of more than 90 days, in respect of an overdraft/ cash credit.
The bill remains overdue for a period of more than 90 days in the case of bills purchased and discounted.
Any amount to be received remains overdue for a period of more than 90 days in respect of other accounts.

For example, an overdue loan.