The Indian banking sector experienced a dramatic transformation following the initial stage of economic liberalisation, and credit management gained widespread recognition. The banking industry plays a crucial role in the financial services sector by directing funds toward constructive uses, facilitating the transfer of cash from units with surpluses to those with deficits, and assisting the government's economic and financial policies. The most urgent problem that banks are currently facing is non-performing assets (NPAs), which pose a threat to the entire financial system in addition to being a liability for the banks. Banks' capacity to lend more is restricted by the growing amount of non-performing assets (NPAs), which reduces interest revenue and strains fund recycling. The growing amount of non-performing assets has made banks more watchful and cautious when extending credit to customers. Taking into consideration the major public sector banks that are coping with the rising number of non-performing assets (NPAs), this study aims to evaluate the Impact and Comparative Analysis between NPAs and the Indian Banking System (public and private sector banks). Banks are now managing non-performing assets proactively with the RBI's assistance. Banks must adopt a number of actions to lower the amount of non-performing assets (NPA) in order to strengthen the Indian banking sector.

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Keywords: Banking, Non-Performing Assets, Substandard Assets, Doubtful Assets, Loss

Assets, Lending, Public Sector Bank, Private Sector Bank.