New Delhi, Sept. 5 -- Imagine you lend money to a friend who promises to return it in three months. However, even after continuous reminders, you don't get your money back. Well, the same thing happens with banks. A lot.

Any loan for which the principal or interest payment is overdue for at least 90 days is called a non-performing asset (NPA). Gross NPA refers to the total amount of debt that has stopped generating income for the bank. Net NPA accounts for provisions - funds that banks or financial institutions set aside to cover potential future losses from loans that are likely to default.

High NPAs are an indication of poor financial health as they place a significant burden on a lender's operations and threaten its stability. Here a...