There seems to be no unanimity in the proper policies to be followed in resolving this problem. NPAs reflect the performance of banks. A high level of NPAs suggests high probability of a large number of credit defaults that affect the profitability and net-worth of banks and also erodes the value of the asset. NPAs affect the liquidity and profitability, in addition to posing threat on quality of asset and survival of banks. The problem of NPAs is not only affecting the banks but also the Indian economy. In fact high level of NPAs in Indian banks is nothing but a reflection of the state of health of the industry and trade. It is necessary to trim down NPAs to improve the financial health in the banking system. For the study data has been collected from secondary sources. An attempt is made in this paper to understand NPA, the status and trend of NPAs in private sector banks of India. The factors contributing to NPAs, reasons for high impact of NPAs on private sector banks in India and recovery of NPAs through various channels.