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A Non-performing asset (NPA) is defined as a credit facility in respect of which the interest and/or installment of finance principal has remained ‘past due’ for a specified period of time. NPA is used by financial institutions that refer to loans that are in jeopardy of default. Once the borrower has failed to make interest or principal payments for 90 days the loan is considered to be a non performing asset. Accordingly, with effect from March 31, 2004, a non performing asset (NPA ) is a loan or an advance where
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