NPAs fell to ₹8.34 lakh cr.

A non performing asset (NPA) is a loan or advance for which the principal or interest payment remains overdue for a period of more than 90 days.
Banks classify NPAs further into Substandard, Doubtful and Loss assets.
- Substandard assets: Assets which have remained NPA for a period less than or equal to 12 months.
- Doubtful assets: An asset would be classified as doubtful if it has remained in the substandard category for a period of 12 months.
- Loss assets: Loss asset is considered uncollectible and of such little value that its continuance as a bankable asset is not warranted, although there may be some salvage or recovery value.

With respect to agriculture, a loan granted for short duration crops will be treated as NPA, if the instalment of principal or interest thereon remains overdue for two crop seasons.
A loan granted for long duration crops will be treated as NPA, if the instalment of principal or interest thereon remains overdue for one crop season.

Non-performing assets (NPAs) or bad loans of Scheduled commercial banks have declined by ₹61,180 crore to ₹8.34 lakh crore at the end of March 31, 2021, as result of various steps taken by the government.
Scheduled commercial banks were carrying NPAs worth ₹8.96 lakh crore on their balance sheet at the end of March 2020.

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