1. CHINTAN
DESAI
Universal Business
SCHOOL

2. What is NPA ?
NPA is a classification used by financial
institutions that refer to loans that are in
jeopardy of default.
Interest of
principal
remain
overdue
The account
remains out of
order
The bill
remains
overdue
No active
transactions in
the account
Any amount to
be received
remains overdue

3. Classification of NPA ?
Sub-standard
assets
Doubtful Assets
Loss
assets

4. Example of NPA
Grace Period
Bank’s
balance
sheet
Recovery

5. Problems caused by NPA ?
Depositors do not get
rightful returns
Bank shareholders are
adversely affected
Redirecting of funds
Liquidity problems
may ensue

6. NPA Solutions
Restructuring of
finance
Debt Recovery
Tribunal
Legal Issues
Winding up
proceedings
Regular Training
Programs