The Non Performing Assets which is quite a well known term to everybody since last 5 years. In the last years of this decade so many Losses have been occurred to banks due to Non Performing Assets, that Banks are now reluctant to offer the loans to genuine borrowers even. The banking industry has undergone a sky changes after the beginning of economic liberalization since 1991 and thus also impacted Credit management. In these years, as we said banks are very cautious in giving loan to borrowers. The reason is undoubtedly high Non Performing Assets. The banks are taking all precautionary measures to the great extent so that it can prevent itself from falling in a situation of incurring great losses due to non performing assets. Non Performing Assets definitely a profit cutter to the banks portfolio and it is another cause why the depositors do not get benefit. I we analyse the interest benefits passed on by the banks in last 5 years, it is continuously declining and rate of interest on saving has fallen up to 3.5 percent. This is probably the lowest rate of interest on saving bank Accounts ever offered.  Hence banks including Reserve Bank of India are taking all corrective actions to pin out the problem and any how fix it or at least put on the minimum count. However sometimes some other external non controllable factors such as COVID-19 occur which impacts the earning of borrower and due to which the repayment capacity of borrower is impacted a lot. If we keep aside such factor, the rest other causes can be measured with proper policy implementation and by making guidelines.

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Keywords: Non Performing Assets, Factors Effecting Non Performing Assets, Prudential Norms.