NPA Full Form | What Is The Full Form Of NPA 2024 - F F Meaning

 

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Friends, have you also searched about the Full Form of NPA, what is the meaning of NPA, what is NPA full form and what is NPA, etc India And you are disappointed because not getting a satisfactory answer so you have come to the right place to Know the basics about NPA full form in the bank, NPA meaning in English, what is NPA means and NPA in India.

Friends if you read the newspaper or watch the news, then you often get to see and hear the name of NPA. Then the idea comes to your mind that after all what is NPA and what is NPA Full Form. Today I will make you aware of all the meaning of NPA so stay till the end of the article.

 

Table of Contents

NPA Full Form | What Is The Full Form Of NPA

 

NPA Full Form 

 

The Full Form Of NPA is "Non-Performing Asset".

 

NPA Full Form In Banking / Bank NPA Full Form

 

The full Form Of NPA in banking is "Non-Performing Asset".

 

NPA Full Form In Share Market

 

The Full Form Of NPA in the share market is a "Non-Performing Asset".

 

NPA Full Form In Salary

 

The full Form Of NPA in salary is "Non-Practicing Allowance".

 

NPA Full Form In Telecom

 

The full Form Of NPA in salary is "Number Planning Area".

 

What is NPA?

 

A loan given to someone by the bank is an asset for the bank. The bank earns money in the form of interest and whoever has taken a loan from the bank that loan is a liability for him because later that loan will be returned to the bank.

 

When the interest and principal amount of the loan is repaid on time then that loan is called Standard Asset and if the person who has taken the loan does not fill the instalment of that loan for more than 90 days from the scheduled date then that loan is called Non-Performing Asset.

 

What Is The Meaning Of NPA?

 

NPA helps in knowing the financial condition of the bank, so it is very important to see the NPA while analyzing the bank. NPA has its own different criteria for agriculture and some specific loans. 

 

The interest received on the loan is income for the bank and when the bank Stops generating income from that loan, it becomes an NPA for the bank.

 

In the last two four years, the NPA of the bank i.e. Non-Performing Asset has increased rapidly and is seen mainly in Public Sector Bank.

 

What Are The Reasons For Becoming NPA?

 

There are the following reasons for becoming NPA.

 

1. Many times the loan is given to the borrower without proper investigation becoming NPA.

 

2. Many times loan is given due to the influence of the political party becoming NPA.

 

3. Many times the loan is given by an acquaintance, in which there is no complete verification of the borrower becoming an NPA.

 

4. The Sufficient Asset is not pledged from the borrower. This is the main reason for NPA.

 

Due to these reasons the NPA of the bank increases.

 

Types Of NPA

 

Banks categorize NPAs into three categories.

 

1. Substandard Asset

2. Doubtful Asset

3. Loss of Asset

 

1. Substandard Asset

 

Loans that are NPA for 12 months or less are called Substandard Assets.

 

 2. Doubtful Asset

 

A loan that remains NPA for more than 1 year, then it is called a Doubtful Asset, which means that the loan whose chances of recovery are very less.

 

 3. Loss of Asset

 

NPAs in which the bank has to bear the loss. Either the bank is unable to recover or even if it does, then the borrower does not have enough assets from which the bank can recover the amount given by the bank.

 

How Can The Bank Recover NPA?

 

To recover money, the bank adopts different types of processes, such as recovering money by selling whatever the borrower has mortgaged.

 

If someone has taken a loan by pledging the shares of his company with the bank, then on not repaying the loan, the bank recovers the money by selling those shares.

 

Many times, if the company does not repay the loan, the banks take the company to the NCLT i.e. National Company Law Tribunal, where the bank recovers its money by liquidating the company by selling all the assets of the company or by selling the entire company.

 

Most of the time, the bank is not able to recover its entire money through the liquidation of the company, if the loan is unsecured means the bank has given a loan without pledging anything such as a personal loan and no one repays that unsecured loan then that loan becomes very difficult for the bank to recover.

 

Top 5 Highest NPA Banks In India

 

Bank Name	Gross NPA
1. State Bank of India	Rs.2.01 trillion
2. Punjab National Bank	Rs.552 billion
3. IDBI Bank	Rs.445 billion
4. Bank of India	Rs.434 billion
5. Bank of Baroda	Rs.416 billion

 

NPA FAQ's

 

What is the Bank Overdraft Facility?

The facility of overdraft is usually provided in the current account, you can withdraw money from the bank till the amount of money you have in your bank account and the limit that the bank has provided to you. Thus the bank gives overdraft facility and the overdraft facility also promotes NPA.

 

If a company has taken an overdraft and that company is unable to pay the overdraft to the bank after 90 days from the date of repayment of the overdraft, then after that it will become an Overdraft Non-Performing Asset ie NPA.

 

What is NPA Ratio?

There are some ratios related to NPA

 

1. NPA Ratio

2. Provision Coverage Ratio

 

How is the NPA Percentage calculated?

NPA % = (Non Performing Asset / Total Loans) × 100

 

This formula is used to calculate NPA %.

 

Which public sector bank has the highest NPA?

SBI (State Bank Of India)

 

Why there is a problem with NPA?

Many big companies did not repay the loan after taking the loan from the bank and many banks have increased the problem of NPA for themselves by distributing the loan without any security.

NPA Full Form YouTube Video Guide👇

credit/source:- Convey by FinnovationZ

Conclusion

 

The main focus of the bank should be how to keep NPA to a minimum because NPA makes a big difference to the financial health of the company.

 

Through the above article NPA Full Form | what is the Full Form of NPA, I have told you the Full Form of NPA, what is the meaning of NPA, what is NPA full form, what is NPA, NPA's full form in the bank, NPA meaning in English, what is NPA means and NPA in India.

 

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