In banking, NPA are loans given to doubtful customers who

may or may not repay the loan on time. There are two types

of assets viz.,performing and non-performing. Performing

loans are standard loans on which both the principle and

interest are secured and their return is guaranteed.

Non- Performing Asset[ NPA] is a a result of asset

liability mismatch.A NPA account in the books of accounts

is an asset as it indicates the amount receivable from the

defaulters