Banking sector being the pillar of the nation’s growth is facing the serious issue of Non-Performing Assets (NPA) which will adversely affect the profitability and goodwill of the banks. NPA is not a single economy’s problem as many countries in the world face the same but the level of severity differs. However, India’s NPA chart shows an increasing trend in NPA levels for past few years which need an attention. The Public Sector Banks (PSBs) continue to be under stress, on account of aggressive lending in the past. India's bad loans are fifth highest in the world and surged dramatically after March 2015.The study shows the reasons behind the increase of NPA levels and some measures to reduce the same.