The banking sector is a support of a nation’s financial system. Measuring and maintaining the asset quality of banks is important for the development of the Indian banking sector. Nowadays, the Public Sector Banks is constantly causing painful stress to the banking sector, and Indian economy. The objective of the present study is to highpoint the level of NonPerforming Assets, and how it influences the profitability of the banks. For this purpose, the study considered Gross and Net NPA of 10 banks, five Public & five Private sector banks from the period of 2015 to 2019. The study identified that both the public and private sector banks gradually increase their Gross & Net NPA during the study period. The study found that there is a significant positive relationship between Gross NPA and Net NPA of public and private sector banks. The study also found a significant negative relationship between NPA with Return on Assets of public & private sector banks. The impact of public and private sector banks significantly influences the Gross and Net NPA.

Keywords : Non-Performing Assets, Public and Private Sector Banks, Return on Assets