The magnitude of the NPAs in the Indian public sector Banks has been quite serious as well as unprecedented in scale. The situation regarding the NPAs is not sustainable, given the present trend of continuous deterioration that has taken place until recently. The long-held notion that the NPAs of public sector Banks has been mostly due to the priority sector lending has been disproved and the incidence of NPAs in non-priority sector has been much serious, so much so that some of the public sector Banks have been handicapped due to the deterioration in their capital adequacy ratios. Still, there does not seem to be a strong academic base of knowledge explaining the causes of Non-Performing assets among the Indian public sector Banks. The Banks managements seem to be finding it very difficult to cope with the rising NPAs and to develop appropriate mechanisms to prevent the occurrence of bad loans. From the borrowers perspective, very little is known regarding the causes of NPAs. There appears to be very meager understanding of the specific causes that lead to the problem of Non-Performing Assets. Though there is a general explanation that the Banks ability to carry out proper credit evaluation is lacking and monitoring by the Bankers after the loans are disbursed is unsatisfactory. There is also a general explanation that the fall in economic growth has resulted in the increased incidence of Non-Performing Assets. Different authorities also tend to opine that priority sector loans lead to higher incidence of Non-Performing Assets. However, there are many important questions that do not appear to have satisfactory answers. Hence, the present study proposes to carry out an academic study to place on record the perspective of the borrowers with reference to the Non-Performing Assets that have taken place in the premier public sector Bank of India, the State Bank of India.

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Keywords: Knowledge, Non Performing, Evaluation, Perspective, Economic, Knowledge, Obligations.