How the bank is judged
Gross & Net NPA ratio: how bad is the loan book, really?
Bad loans as a share of all loans — gross before provisions, net after.
Why it matters
These are the headline asset-quality numbers in every results story — the real read is the gap between gross and net, not panicking at the scary gross figure.
A worked example
A 5% gross NPA can hide very different realities: with heavy provisions net drops to ~2%; with thin ones it stays near ~4%.
The picture
What it leads to
The wedge between gross and net is created by provisioning and measured by the Provision Coverage Ratio.
Where it sits in the map
Follow the causation