INTRODUCTION
A number of countries face the problem related to non-performing loans and their levels. Non-performing loans can be a heavy burden for banks, reducing their ability to extend credit to the real economy .Any bank faces non-performing loan risk due to its main function as a financial intermediary. Various efforts have been made by banks to avoid the Non-performing loans .However due to various reasons in organizational environment or debtor’s management ability any bank continues to experience them. In result Non performing loans affect the total economic growth, banks themselves, borrowers and taxpayers too.