How to Calculate the Non-Performing Loans to Loans Ratio. The non-performing loans to loans ratio is calculated by adding 90+ day late loans (and still accruing) to nonaccrual loans, and then dividing that total by the total amount of loans in the portfolio.

How is NPL ratio calculated?

The calculation method for the NPL ratio is simple: Divide the NPL total by the total amount of outstanding loans in the bank's portfolio. The ratio can also be expressed as a percentage of the bank's nonperforming loans.

What is net NPL ratio?

Net NPL ratio means non-performing loans less specific allowance as a percentage of gross loans, advances and financing less specific allowance.