Vol. 8, Issue 1, Part D (2022)

Abstract
Non-Performing Assets (NPAs) are such loans which dispersed by bank, to which borrower makes default in making payment of principal or interest amount. Whenever a bank is not in a position to recover the loan or regular interest on such a loan, the flow of fund in banking system is adversely affect, This dilemma related to Non-Performing Assets is distressing for the bank and for the economy of the country. An NPA is such loan assets, ceased to generate any income for the bank in the form of repayment of interest or principal. In the presiding chapter focus has been given on the commercial banking structure and system in India and detail. In this chapter a detail description related to Non-Performing Assets, its status in Indian commercial Banks because the mounting volume of NPA in the Indian Banking System have unpleasant effect on banks and major impact on the economy.