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The bank's profit is measured as Return on Assets which is the ratio of Bank’s net profits and Net assets. In case of increasing NPAs, the bank's net profits will decrease, but what will happen to net assets?

  • If you have more assets, your net assets increase. But their values decrease over time, and might turn $0. – RonJohn Sep 5 at 12:57
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    I disagree that this is off-topic, because OP might be trying to read the bank's quarterly report before deciding whether or not to invest in it. – RonJohn Sep 5 at 12:59

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