Whether Non Performing Assets(NPA) classification in a bank, Borrower based or Account based?

A Non-performing asset (NPA) is defined as a credit facility in respect of which the interest and/or installment of Bond finance Principal principal has remained ‘past due’ for a specified period of time. NPA is used by financial institutions that refer to loans that are in jeopardy of default. Once the borrower has failed to make interest or principle payments for90 days/3 Months the loan is considered to be a non-performing asset. Non-performing assets are problematic for financial institutions since they depend on interest payments for income. Troublesome pressure from the economy can lead to a sharp increase in non-performing loans and often results in massive write-downs.