Non-performing assets (NPAs) are loans or advances that are in jeopardy of default, where the borrower has not made scheduled payments for a specified period, typically 90 days. This situation poses significant risks to the financial health of lending institutions, as it can lead to reduced profitability and liquidity issues.

Non-performing Assets

Loans are financial agreements where a lender provides money to a borrower with the expectation of repayment, typically with interest, over a specified period. They are fundamental to personal finance, business operations, and economic growth, enabling the purchase of goods, services, and investments that might otherwise be unattainable.

Loans

Advances

Jeopardy of default

Scheduled payments

Specified Period

90 Days

Financial health refers to the state of one's personal financial situation, encompassing the ability to manage expenses, save for future goals, and withstand financial shocks. It is a comprehensive measure that includes income, expenditure, savings, investments, and debt management, indicating overall financial stability and security.

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