What are non-perfoming assets?

• Non-performing assets, also called non-performing loans, are loans,made by a bank or finance company, on which repayments or interest payments are not being made on time. 
• A debt obligation where the borrower has not paid any previously agreed upon interest and principal repayments to the designated lender for an extended period of time. 
• The nonperforming asset is therefore not yielding any income to the lender in the form of principal and interest payments.