What is the difference between Gross NPA and Net NPA? - ProProfs Discuss
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What is the difference between Gross NPA and Net NPA?

Asked by Millie Brown, Last updated: Jul 04, 2020

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Malcolm Carneal

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Malcolm Carneal, Digital Nomad, MCA, Hawick

Answered Mar 18, 2020

NPA may be a classification employed by financial institutions that ask loans that are in jeopardy of default. One the borrower has did not make interest or principal payment for 90 days then the loan is taken into account to be non-performing assets.

Net NPA's are those sort of NPA's during which the bank has deducted the supply regarding NPA's.

 

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