Non-performing Asset is one of the biggest problem in India. It is a threat to the country and hinders the development of the country. Non-performing Asset is higher in banking sector. In recent years it has been increasing to a great extent, especially in the public sector banks. The increasing Non-performing Asset has its implications on profitability, liquidity of the banks. It will also affect the goodwill and public image of the banks. Non-performing Asset should be recovered as much as possible. There are certain ways to recover the Non-performing Asset under the various laws in India. This paper is to understand the laws that governs the Non-performing Asset and ways to recover it. This paper will also analyze the different modes of recovery adopted by the banks to recover Non-performing Asset and which is the more effective mode of recovery.
