Non-Performing Assets (NPAs) refer to loans or advances that are in default or are not generating income for the lender. Typically, a loan is classified as an NPA when the borrower has not made any scheduled payments for a specified period, usually 90 days. This situation can arise due to various reasons, including financial difficulties faced by the borrower. NPAs are a significant concern for financial institutions, as they can affect profitability and liquidity. High levels of NPAs may indicate poor credit risk management and can lead to increased provisions for bad debts, impacting the overall financial health of banks and other lending entities like credit unions and microfinance institutions.