One of the major challenges for banks, NPAs have an adverse impact on profitability, stability, and shareholders' equity. The current study, therefore, is an attempt to explore the impact of NPAs on shareholders' equity and returns, with special emphasis on the application of AI and block chain technologies as innovative solutions to the problem. It considers takaful principles in examining Fintech Corporations characterized by high NPAs and focuses on the main external and internal factors behind NPAs high interest rates, inadequate monitoring, natural calamities, willful defaults, recession, and unhealthy competition. The study uses AI-based predictive analytics to project potential NPAs and proactive measures in enhancing asset management processes. Block chain helps to introduce transparency and security of financial transactions, providing an immutable ledger that will help in creating accurate record-keeping and auditability. Taken together, these technologies offer robust solutions for the management of NPAs, risk reduction, and financial stability. Results underline the huge impact AI and block chain can have in attenuating the negative impact of NPAs on shareholder equity and returns. These technologies, therefore, stabilize and make the banking sector more effective by addressing these interrelated external and internal factors. This research thus follows the journal's focus on the implementation and management of advanced information systems to improve socio-economic environments related to the potentials AI and block chain can bring into the process of financial management.