Gross NPA vs Net NPA
5paisa Research Team
Last Updated: 01 Jan, 2025 10:34 AM IST

Content
- What is Gross NPA?
- What is Net NPA?
- Gross NPA and Net NPA: Key Differences
- Point to Point comparison between Gross NPA and Net NPA
- Conclusion
Gross NPA vs Net NPA are the terms that denote the total or a part of the loan that is not yet repaid by the borrower.
Imagine a situation where the borrower refuses or simply postpones paying back the money that they borrowed from a moneylender. This is a circumstance when the borrowed asset is referred to as the NPA or non-performing asset. Here, the asset does not longer generate income from that lender simply due to the fact that the borrower does not repay the interest’s principal amount.
Welcome to this post that clearly explains the facts and aspects of non-performing assets. Discover the meaning, terms, and differences between gross NPA vs net NPA.
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Frequently Asked Questions
Currently, it is envisioned that the NPA in India will further improve to around 4.9% by September of this year. The gross NPA ratio has reduced from 14.6% in 2018 to 5.53% in 2022.
The current GPA in India in 2023 is 5.53% as of December 2022.
Gross NPA (or GNPA) ratio is the total HNPA of the advances. Net NPA (or NNPA) uses the net NPA to demonstrate the total advances ratio.
NPA is calculated by dividing non-performing assets by the total loans. It offers the NPA ratio. After you multiply this figure (which may come in decimal), you get the overall NPA percentage.
The GPA is calculated by dividing a non-performing asset by the total loans. It offers the ratio in decimal form. If you multiply the amount by 100, you get the overall percentage.