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Abstract
At present Indian Economy is dominant economy in the world. Growth rate of Indian economy is superior in comparison to other developed and developing countries. In the path of development Indian economy is facing many problems. Problem of Non-Performing Assets is one of the major problems in the front of Indian economy policy makers. Due to increasing burden of Non-Performing Assets banking sector is facing problem of credit crunch. Availability of credit in banking sector is shrinking at present. The nature of study is descriptive and explorative. This paper aims mainly to highlight the causes and problems of NPA’s in Indian economy and suggest policies regarding better utilization of financial resources to the banking sector and government of India.