The Non performing assets or else simply NPA’s of the Indian banks would raise further is the warning given by the rating agency S&P. The reasons suggested for this development by the organization are the decline in the economic growth and the high rates of interest charged by the banks along with the depreciation of the value of the Rupee. NPA’s are nothing but the loans that were not performing or else unpaid by the borrowers. As the economic gloom increases the profits of these industrial borrowers tend to thin down and in some cases they fall into the losses too. Then, they would not be in a position to back their loans to the lending banks. This inability of the borrowers to pay back the monies they have borrowed, results in what is called as the NPA’s in the banking parlance.These NPA's now(2011-12) were at 3.3% of the assets, in case of our public sector banks. This figure for the last year was at 2.3%.  The most vulnerable in our case are the Small and medium enterprises mostly. Many of these firms do take loans from the banks for various needs of theirs like the working capital. Then as the overall demand scenario for their outputs or produce is falling in the markets as a result of the Global and domestic factors, they do end up in losses.And, thus they could not pay back their loans to the banks, which would negatively affect the lending banks.  It is not only the banks of our country, in troubled zone now; but also the banks of the Russia, China and Brazil too are going to find themselves in this vulnerable zone with in the coming 12-24 months as per the S&P reports. Thus it is a much larger crisis that is unfolding for the BRIC group of countries. Previously these countries were expected to save the Global economy, by their rapid economic growth. But, now things do turn up otherwise. The last resort or the hope of the Global economy, that was rested on BRIC countries, has now to be forgotten for good, it seems.