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Term explained · Banks and lenders

What are gross NPA and net NPA? With real Indian lenders

Gross and net NPA in plain English: RBI's 90-day rule for bad loans, how provisions turn gross NPA into net NPA, and the figures for banks on Cityfort.

Reviewed by Cityfort Research on , 1 min read

For learning only. Cityfort is not a SEBI-registered adviser and does not recommend buying or selling any security. Prices shown are dated and may be out of date.

What is an NPA?

NPA stands for non-performing asset: a loan that has stopped earning income for the bank. Under RBI's rules, a term loan becomes an NPA when interest or principal stays overdue for more than 90 days.[S1]

Other loan types have their own tests. An overdraft becomes an NPA when it is "out of order", for example above its limit for 90 days running.[S1]

What is the difference between gross and net NPA?

Gross NPA is the total of all such loans. Banks usually show it as a percentage of their total loans.

Net NPA subtracts the provisions already set aside for those loans. RBI's disclosure format nets these provisions off gross NPAs to arrive at net NPAs.[S1]

How does a bad loan age?

RBI sorts NPAs by how long they have been bad. A substandard asset has been an NPA for up to 12 months.[S1]

A doubtful asset has stayed substandard for 12 months. A loss asset is one where a loss has been identified but not yet fully written off.[S1]

Where do you see it on Cityfort?

Each bank's stock page shows gross NPA in "The numbers" and both figures in "Financial strength". The share of bad loans already provided for is the provision coverage ratio.

See it in real companies

Gross NPA at companies on Cityfort

5 companies on Cityfort, listed A–Z (not ranked).

Bajaj Finance
1.01%FY26 · consolidated · source S1, S8
HDFC Bank
1.15%FY26 · standalone · source S1, S62
ICICI Bank
1.4%FY26 · standalone · source S24, S1
Kotak Mahindra Bank
1.2%FY26 · standalone · source S1
SBI
1.49%FY26 · standalone · source S1

From each company's filings, as cited on its Cityfort stock page. These figures change when a stock page is updated.

See it in real companies

Net NPA at companies on Cityfort

5 companies on Cityfort, listed A–Z (not ranked).

Bajaj Finance
0.41%FY26 · consolidated · source S1, S8
HDFC Bank
0.38%FY26 · standalone · source S1, S62
ICICI Bank
0.33%FY26 · standalone · source S24, S1
Kotak Mahindra Bank
0.25%FY26 · standalone · source S1
SBI
0.39%FY26 · standalone · source S1

From each company's filings, as cited on its Cityfort stock page. These figures change when a stock page is updated.

Questions people ask

When does a loan become an NPA in India?
Under RBI's directions for commercial banks, a term loan becomes an NPA when interest or principal stays overdue for more than 90 days.[S1]
What is the difference between gross NPA and net NPA?
Gross NPA counts all bad loans. Net NPA subtracts the provisions the bank has already set aside for them, as RBI's disclosure format requires.[S1]
What are substandard, doubtful and loss assets?
RBI sorts bad loans by age. A substandard asset has been an NPA for up to 12 months. A doubtful asset has stayed substandard for 12 months. A loss asset is one where a loss has been identified but not fully written off.[S1]

Sources

  1. S1Reserve Bank of India (Commercial Banks – Income Recognition, Asset Classification and Provisioning) Directions, 2025 (RBI/DOR/2025-26/164) · Reserve Bank of IndiaTier 1: company or exchange filing · 28 Nov 2025

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For learning only. Cityfort is not a SEBI-registered adviser and does not recommend buying or selling any security. Prices shown are dated and may be out of date.

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