Nonperforming assets (NPAs) are recorded on a bank's balance sheet after a prolonged period of non-payment by the borrower.
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Substandard asset, doubtful asset, or loss asset, depending on the length of time overdue and probability of repayment. |
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Taking possession of any collateral or selling off the loan at a significant discount to a collection agency. |
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Overdraft and cash credit (OD/CC) accounts left out-of-order for more than 90 days |
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Expected payment on any other type of account is overdue for more than 90 days |