RBI has been floated a proposal whereby large foreign banks would be required to incorporate locally and in return will get the freedom to open more branches. At present, foreign bank licences are very strictly regulated and RBI releases a handful of licenses every year. The number of foreign banks has declined from 42 in 2001 to around 36 at present. But although there are more foreign banks than nationalized banks or private banks, their presence does not count for much because of branch restrictions. Most of the lenders are single-branch operations in India and function like investment banks. Only a handful of banks - including Standard Chartered, Citibank, HSBC, Deutsche Bank and DBS — have a sizeable presence in India. Following the global financial crisis in 2008, most of the foreign banks have scaled down their balance sheets in India. Unfortunately they are burdened with excessive Non Performing Assets (NPA), massive manpower and lack of modern technology. It is also dangerous for bank's profitability credibility and economics of scale. Narasimham Committee report recommended various guidelines to RBI in 1993 to identify and reduce of NPAs be treated as national priority. NP Aindicated the bankers credit risks and efficiency of allocation of sources. The Financial reforms have helped largely to reduce NPAin Indian Bank Industry. This paper attempts to analyze the performance of different banks. To compare the performance of public sector, private sector and foreign banks selective indicators were taken into considerations. These Indicators were Gross NPAs and Gross Advances.

Keywords Classification of NPAs, Provision of Assets, Trends of NPAs in Foreign Banks.