Twin balance sheet problem is very important issue to be studied for the growth of the country, Twin balance sheet problem is a problem that occurs when there is a Problem in the balance sheet of one sector due to the other sector like if there is Problem in the balance sheet of industrial sector then definitely there will be Problem in the balance sheet of banking sector also and vice-versa and for the development of any economy these two sectors i.e. banking and industrial sector have to be studied broadly, this is possible only when proper stress will be given on the sustainable development of industrial sector and  very well organized banking sector so we have to look after proper  functioning of these two sectors, by studying their balance sheet problems, so that non- performing assets(NPAs) and bad loans  can be reduced, although government has introduced various  schemes to solve twin balance sheet problem but results were not up to the expected level, In 2015-16, economic survey report also it has been mentioned that twin balance sheet problem is the biggest problem for the indian economy, Financial stability report, 2018 of RBI also states that gross non- performing asset ratio(GNPAs) have not reduced instead its keep on rising. In this article twin balance sheet problem, its origin, various government schemes will be explained and why these schemes have failed.

KEYWORDS: Banking Sector, Gross NPA, TBS, Public Sector Banks, Financial Stability.