A robust banking framework serves as a catalyst for economic development and inclusive financial growth. This research presents a comparative evaluation of asset quality between public and private sector banks in India, specifically focusing on Gross Non-Performing Assets to Total Advances. Given that the banking sector acts as the backbone of economic stability, managing credit risk is essential for sustained growth and financial health. The study utilizes secondary data to analyze trends in credit defaults and lending practices across the two banking sectors. The study examines how these institutions align with international Basel regulatory standards to mitigate losses and maintain capital adequacy. The analysis investigates whether ownership structure-private versus public-results in a statistically significant difference in NPA management. Preliminary results suggest that while both sectors face challenges with credit recovery, their resilience is heavily dictated by the effectiveness of their respective risk management frameworks and adherence to regulatory capital norms. By providing a side-by-side comparison of GNPA ratios, this study offers insights for policymakers and financial analysts regarding the credit health of the Indian banking landscape and the effectiveness of recovery mechanisms.