The reforms in the financial sector have resulted in numerous changes in the banking sector. In order to improve the financial health of the banks, various norms have been introduced at regular intervals. As the banking sector constitutes a major component of the financial service sector, the soundness of the banking sector is necessary for a dynamic and healthy economy. The establishment of a productive, efficient and stable economy is possible only when a country is having a sound and healthy banking sector. Through this paper an attempt has been made to compare the performances of nationalized, private and foreign banks operating in India. The study has been undertaken by taking the performances of the nationalized, private and foreign banks in terms of the Non-Performing assets as the base, since it is quite clear that generally the good health of a bank is reflected in good return on assets. The Non-Performing assets not only reduce the profitability of the banks by writing off the principal amount as well as, the amount of interest on advances, it is also a threat to the stability of the bank. The study reveals that the foreign and nationalized banks are facing more problems of NPAs in comparison to the private sector banks.

Keywords: Non Performing Assets, Management Efficiency, Banking Sector, Financial Sector.