ABSTRACT Banking sector acts as backbone in the working of a strong economy system. Even though the banks in India have shown spectacular performance but there has been significant decline in the productivity and efficiency of the banks resulting in erosion of their profits. The presence of Non-performing assets had an adverse impact on the efficiency of banking system thereby resulting in shifting the focus towards improving quality of assts and better risk management. Although NPAs are issue of individual banks and financial institutions, it has wider macroeconomic implications. Review of the studies and reports of the committees highlighted the key factors that contribute to accumulation of Non-performing assets. Though RBI and various committees have suggested several prudential measures, the banks still continue to face piled up NPAs. So the present study titled Managing Non-Performing Assets of Commercial Banks in Competitive Era will intend to identify the primary reasons for the occurrence of NPAs in the commercial banks and will also suggest certain solutions to reduce this problem.