Banking sector is the back bone of nation’s economy. In India, banking sector is playing a vital role in economic development of by providing the required finance to various sectors. One of the primary functions of banks is lend money. Banks create credit to extend financial assistance in the form of business loans, agricultural loans, vehicle (automobile) loans, housing loans, personal loans etc. This lending process results credit risk to banks and then lead to non-performing assets (NPAs). These NPAs increase the carrying cost and adversely affect the profitability of banks and finally show negative impact on banks’ net worth. The present paper is aimed to study the performance of public sector in India with reference to their NPAs.