The banking sector play a key role in financial performance and economic growth of the country and the banking sector in India faces many challenges and issues regarding the Non performing assets. NPA are considered as big problem in the present days. The objective of the study is to find the level of non-performing assets of banking sector in India and the impact of non-performing assets on profitability and financial performance of banks in India. This study identified that public sector banks have highly affected than private sector banks due to non performing assets in India and the increasing level of NPAs impact the profitability of the banks