ECONOMICS

Detailed explanation-1: -NPA Ratios NPAs can also be expressed as a percentage of total advances. It gives us an idea of how much of the total advances is not recoverable. The calculation is pretty simple: GNPA ratio is the ratio of the total GNPA of the total advances. NNPA ratio uses net NPA to find out the ratio to the total advances.

Detailed explanation-2: -3. How is NPA calculated? NPA is calculated by dividing the non-performing assets by total loans will give the NPA ratio in decimal form. Then, multiply it by 100 to get the NPA percentage.

Detailed explanation-3: -For the above category of banks, an account would be classified as Non Performing Asset if the : (i) Interest and/or installment of principal remain overdue for a period of more than 180 days in respect of a Term Loan.