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Abstract
India has an efficient system of banking from time immemorial. Banking acts as a pillar for regulating and monitoring of our financial activities and leads to the economic growth of our country. Indian banks favor the growth of our economy through growth, asset quality and profitability. Reserve Bank of India and government made numerous changes in the banking regulations and policies to enhance the strength of the banking sector. Some of the changes such as strengthening the prudential norms, enhancing payments system and integrating regulations of commercial banks were introduced in our country. Asset management in the banking sector is facing numerous regulations and interventions due to the deteriorations happening in the areas of asset quality and capital enhancement. In the present scenario asset classification is not being properly done and banks were postponing bad- loan classification and deferring the inevitable. Earlier years Non Performing Assets were managed and controlled using the Basils Norms. Technological advancement improved the transparency of assessing the credibility of customers before offering loans to them.The best indicator of the health of our banking industry is its level of Non -Performing Assets (NPA).In a broader aspect NPA will reflect the performance of the banking industry andgrowth of our economy. When there is reduced level of NPAs generally it will gives the impression that the banks have creditworthiness over the years gives and when there is increase in level of NPAs it shows the necessity of more provisions which will always bring down the overall profitability of the banks. The public sector banks in India facing severe problems where the political influence is more. The Improved efficiency and profitability of banking sector will reduces the level of NPA’s in India. This study deals with understanding the concept of NPAs and major causes for the growth of NPA’s. It also focuses on managing NPA’s in the Indian schedule commercial banks using artificial intelligence so it will enable to control the growth of NPA’s in India.