Banking Industry is one of the rapidly growing industries in India and it is expanding very fast, needing larger workforce and better technological and infrastructure facilities. The ownership is well diversified, which can be seen from the co-existence of private and public sector in the country, on one hand and a large number of foreign banks, on the other. Though there is a marked improvement on technological and infrastructure grounds, the quality of asset is deteriorating day by day. The accumulation of huge non-performing assets in banks has assumed great importance. The depth of the problem of bad debts was first realized only in early 1990s. The non performing assets impact drastically to the working of the banks. The efficiency of a bank is not always reflected only by the size of its balance sheet but by the level of return on its assets. NPAs do not generate interest income for the banks, but at the same time banks are required to make provisions for such NPAs from their current profits.