According to R.B.I., for the duration of 2017-18 the continuous worsening in ‘asset quality’ demanded quick increases in provisions and for the first moment in time since 1993-94, the banking structure at the same time as an entire, mainly driven by PSBs, recorded heavy losses. The determinants that lead to the decrease in ‘Asset Quality’ were careless credit evaluation and post approval monitoring standards: project delays and outlay overruns: and deficiency of a well-built in solvency administration until first quarter of 2016. This research paper by means of secondary data taken from diverse sources, try to analyze the trends of components of ‘Non Performing Assets (NPA)’ of Indian public sector banks during the period 2014-2018. The comparative study of NPA of State Bank of India (SBI)&Punjab National Bank (PNB) during the period of study (2014-2018) has also been carried out using Two- way ANOVA (Analysis of Variance). The most important aim of current study is to discover that there are considerable differences in the mean variation of NPA among selected banks and during the period of study. The main finding of the paper highlights to target against big borrowers of the particular bank which increases the magnitude of Gross NPA. The paper also highlights the worst problem ahead due to sharp rise in ‘Doubtful Advances’ of public sector banks post 2016 period. It gives warning signal to the banking system.

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Keywords: Non Performing Assets, Analysis of Variance (ANOVA), Gross NPA, Net NPA.