Financial sector reforms have made significant transformation in Indian banking sector. India has adopted international best practices to make more efficient and strong banking sector in India. Different prudential norms and provisioning norms are issued to improve the overall effectiveness of the banking sector, bringing down non-performing assets level and increasing the profitability of the banks. RBI had implemented Basel I & II norms in the year 1999 and 2003 respectively. It is also in the stage of implementation of Basel III guidelines by March 2019. Although the adoption of global regulatory norms is in process, the percentage of weak assets into the banking sector is also increasing which may become a hindrance in effective compliance with the regulatory norms.

Keywords : Basel III Capital Adequacy Ratio (CAR), Capital to Risk Weighted Assets Ratio (CRAR), Non – Performing Assets (NPA).