Having high non-performing is the cause of losing efficiency and the performance of a bank. The private bank sector suffering by the increasing number of NPL for few years. Banks are trying to improve their performance by reducing NPL. From 2011 to 2017 the ratio of NPL increase from 6.1% to 10.7%.The ratio of NPL is related with entrepreneurs, lending process and macroeconomic factors. Macroeconomic factors are like GDP growth rate, inflation, interest and unemployment rate. The research is about to determinants the trend of increasing non-performing loan. The research is based on last 8 years ration of NPL of 4 private companies. The research focused on four macroeconomic factors which have great influence on NPL. The research indicates that GDP growth rate has only negative relation with the change of non-performing loan. Other factors are positively effect on non-performing loan. When GDP growth rate decrease, there will be low income or unemployment problem. People will face problem to pay loan which increase gross NPL. And if inflation increase the value of money decrease and if interest rate increase then it will be tough to repay loan and creates more non-performing loan. From the research it shows that all banks are not suffering my all macroeconomic factors but most of the factors impact positively or negatively on non-performing loan which reduce the performance and efficiency of bank.
