Abstract

The banking sector in India experienced significant transformation after independence, particularly following nationalization of major banks in 1969. Public sector banks expanded substantially, but the global financial crisis of 2008 resulted in a sharp increase in Non-Performing Assets. NPAs are classified into substandard, doubtful and loss assets. The study examines the magnitude and causes of NPAs, including macroeconomic conditions, poor bank management and aggressive credit policies. It discusses legal measures such as the Insolvency and Bankruptcy Code 2016 and remedial measures including governance reforms, improved RBI regulation, stronger recovery mechanisms, staff training and stricter loan appraisal. Effective management of NPAs is essential for the stability and progress of India's banking system and economy.