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I like to add more on James-bond. As per the rule, bank and financial NPA should be less than 5%. If NPA is more than 5% then this company is in danger. So NRB can take action to correct it. So lower the NPA lower the risk which means company is good for investment.

See this link for the NPA of the listed companies.

http://www.sharesansar.com/financialStatement.php?sector=all&index=nonperforming_loan_to_total_loan&year=&tag=set

non performing assets

if borrower is unable to pay interest of loan at given time then that loan is considered as npa or npl(non performing loan)

example: if you take loan from xyz bank and by some how reason you are unable to pay bank interest within given time(may be 3 months) that bank xyz will consider that loan as npa.

what is NPA explain with details and examples?