1492 terms

Glossary

Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.

Showing 2 terms

Non-performing asset

Regulation & tax

Also called: NPA

A loan account on which an amount has remained overdue beyond the prescribed period — ninety days for most loans — requiring the lender to make a provision against it out of its own profits.

In plain terms

The line past which a lender's posture changes from collection to enforcement. It is also the gate to the statutory power to sell a mortgaged asset.

Read the full lesson →

GNPA

Fundamental analysis

Gross non-performing assets — the share of a bank’s loans that have stopped being repaid.

In plain terms

The single most important number for any bank. Below 2% is healthy; above 6% is a crisis.

Read the full lesson →