The magnitude of NPAs in banks and financial institutions has emerged as an alarming threat to the banking industry in our country. The NPAs growth has a direct impact on the profitability of banks. Several prudential and provisioning norms have been introduced by RBI for improving efficiency and trim down NPAs to improve the financial health of banks. The problem recovery is not with the small borrowers but with large corporate borrowers for which strict policy should be laid down by the banks. The channels of recovery of NPAs like Lok Adalats, DRTs and SARFAESI Act. have extensively been studied in this paper. It is observed that the percentage and amount of recovery in case of DRTs and SARFAESI Act. is comparatively higher than the Lok Adalat channel. The status of Asset Reconstruction Companies has also been studied. It is felt that other channels like One Time Settlement Schemes, Agents appointed for recovery of NPA like Recovery Agent, Enforcement Agent, Self Help Groups especially for recovery of Govt. sponsored schemes could have been studied.