A non performing asset is one which does not earn any income. For example you have built a house consisting of 3 floors and the whole building is occupied by your family member and does not earn any rent, then this is called as a non performing asset.

A non performing asset is a type of asset which does not earn any income and these asset unable to cover up the investment put into it to hold.

if dues in the form of intrest and principle are not paid by borrower for the period of 90 days then the assets is called as N.P.A