GNPA stands for Gross Non-Performing Assets. It represents the total amount of a bank's loans and advances that are not generating income, meaning borrowers have stopped making payments of principal or interest. GNPA is expressed as an absolute monetary value. It indicates the total value of these non-performing assets held by the bank during a specific period, such as a quarter or a financial year.
In simpler terms, GNPA reflects the overall amount of bad loans a bank has on its books. A high GNPA suggests potential financial distress for the bank, as it indicates a significant portion of its assets are not generating revenue. Conversely, a low GNPA is generally a sign of a healthy and well-managed bank.
