• Sumit Deshatwar
• Shivprasad Padole
• Akash Pandit
• H. R. Kulkarni
• Abhay Kand

Non-Performing Assets (NPAs) have emerged as one of the most critical challenges faced by the Indian banking sector. Rising NPAs adversely affect banks’ profitability, liquidity, capital adequacy, and overall financial stability. This research paper examines the nature, causes, and growth of NPAs and analyses their impact on the performance of the banking sector with special reference to public sector banks. The study is based on secondary data collected from Reserve Bank of India reports, annual reports of banks, government publications, and published research articles. Statistical tools such as ratio analysis, trend analysis, and graphical representation have been used to interpret the data. The findings reveal that high NPAs significantly reduce profitability and restrict credit growth. The study concludes that effective credit appraisal, timely monitoring, use of technology, and stronger recovery mechanisms are essential for improving asset quality and ensuring sustainable banking performance.

Non-Performing Assets, Banking Sector, Profitability, Asset Quality, RBI, Financial Performance

"STUDY OF NON-PERFORMING ASSETS AND THEIR EFFECT ON BANKING SECTOR PERFORMANCE", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.13, Issue 1, page no.403-409, January-2026, Available :http://www.jetir.org/papers/JETIRHG06040.pdf

"STUDY OF NON-PERFORMING ASSETS AND THEIR EFFECT ON BANKING SECTOR PERFORMANCE", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.13, Issue 1, page no. pp403-409, January-2026, Available at : http://www.jetir.org/papers/JETIRHG06040.pdf