Research Issue: The main function of any bank is to lend funds as loans to various sectors such as agriculture, industry, personal and housing. In yester years the banks have become very cautious in extending advances, because of increasing Non-Performing Assets. The aim of study is to evaluate the performance of the State Bank of India and HDFC Bank in India with reference to the problem of Non-Performing Assets (NPA). The objectives of this study is : (i) To analyze the trend of the NPA in SBI and HDFC bank in India , (ii) To determine the relationship between Net Profit and NPAs, and (iii) To make a comparative study of NPA among the selected banks.