NPL to Total Loans

A nonperforming loan (NPL) is the sum of borrowed money upon which the debtor has not made his scheduled payments for at least 90 days. NPL to Total Loans is the ratio of nonperforming loans to total gross loans (total value of loan portfolio). The loan amount recorded as nonperforming includes the gross value of the loan as recorded on the balance sheet, and not just the amount that is overdue. The ratio of nonperforming loans to total gross loans is often used as a proxy for asset quality and is intended to identify problems with asset quality in the loan portfolio.

Calculated as: Non-Performing Loans / Total Loans x 100