Non-performing assets (NPAs) impact a bank's profitability. A study on public sector banks in India found that NPAs affect the financial performance of banks. As NPAs increase, profitability, liquidity, and solvency decrease. The study analyzed factors like return on assets, total assets, and net profit, showing a correlation between rising NPAs and other negative impacts on banks. The risk of default has increased for banks globally, leading to higher NPAs. NPAs pose a significant problem for developing countries like India.