Non-Performing Assets have been substantially reduced since regulations were tightened in 1993, but improvement has recently slowed down and the levels of NPA remain high 

compared to international standards. According to RBI norms, NPA has been defined as a credit facility in respect of which interest has remained past due for a period of four quarters. The Gross Non-Performing Assets (GNPAs) of Nationalized Banks as on June 2012 were Rs.73,038 crore which amount to 2.94% of Gross Advances. In this direction present paper is undertaken to study the reasons for advances becoming NPA in the Indian Commercial banks Sector and to give suitable suggestion to overcome the mentioned problem. In this direction present paper is undertaken to study the reasons for advances becoming NPA in the Indian Commercial banks Sector and to give suitable suggestion to overcome the mentioned problem.