A non-performing asset (NPA) is a debt that has been past due and unpaid for a defined amount of time. Investors holding banking equities should be mindful of the non-performing assets (NPAs) in their portfolios as the Q1 FY25 results get near. Several banks reported an increase in non-performing assets (NPAs) during Q1FY25, including IndusInd Bank, AU Small Finance Bank, Karnataka Bank, DCB Bank, and Ujjivan Small Finance Bank, according to Trendlyne statistics.
IndusInd Bank
In Q1 of 2025, IndusInd Bank recorded a net non-performing asset (NPA) of 0.6%, whereas in Q4 of QY24, the net NPA was recorded at 0.57%.
AU Small Finance Bank
Net non-performing assets (NPAs) for AU Small Finance Bank were 0.63% in Q1 of the fiscal year 2025 and 0.55% in Q4 of the previous year.
Ujjivan Small Finance Bank
Ujjivan Small Finance Bank’s net NPA ratio was 0.28% in Q4FY24 and 0.41% in Q1FY25.
CSB Bank
In Q1 of the 2025 fiscal year, CSB Bank had a net non-performing asset (NPA) of 0.68%, compared to 0.51% in Q4 of the previous year.
Jana Small Finance Bank
The net NPA ratio of Jana Small Finance Bank stood at 0.99% in Q1FY25, while it was 0.56% in Q4FY24.
What is a non-performing asset (NPA) for a Bank?
A non-performing asset (NPA) is a loan or advance that no longer brings in money for the bank. This circumstance arises when borrowers don’t make planned principal or interest payments for a consecutive 90-day period. An NPA is applied to the loan after this threshold is exceeded. This rating is significant because it indicates that there may be a chance that the loan may default and the bank won’t get its money back. In banking, “Non-Performing Asset” is the full version of NPA. Since NPAs have a direct effect on a bank’s stability and profitability, they are significant indicators of a bank’s financial health. The bank loses money when a loan turns into an NPA since it no longer contributes to the bank’s earnings.
