Banking sector is the backbone of any economy and plays a pivotal role in the development of the nation. With the ever increasing need of involvement of banks in the economic growth process, the issue of non-Performing Assets (NPAs) has assumed mammoth proportions. Subsequently, as government in emerging countries pushes for financial inclusion, the risk associated with bank assets increases. With this background, this paper analyses problem of non-Performing Assets (NPAs) in Indian banking system. The authors have devised a unique way to forecast the NPAs in Indian banking system in 2020. The focus was to devise a model which would play a pivotal role in forecasting future NPAs in the Indian banking sector. This was achieved by looking into various methodologies and zeroing in on a model, which could be implemented to help understand how NPAs could be predicted.