The banking sector in India is facing a problem with rising non-performing assets (NPAs), which directly affects their profitability. Public sector banks have higher levels of NPAs compared to private sector banks. This is due to factors like increasing risk perception and rising cost of capital. To improve their financial health, banks need to control their NPAs effectively. By analyzing data, it is clear that NPAs are a significant issue that banks must address to enhance their efficiency and profitability.