The Indian Banking Industry has witnessed tremendous changes with the influence of financial sector reforms. Central bank of the country enabling effective implementation of regulatory framework. However the size of NPA in the Indian banking Industry has been on raise because of various factors. The problem of asset quality will affects all the stakeholders of the bank and creates negative impact on Indian economy. Reserve bank of India advises its banks to follow the prudential norms of lending to ensure the asset quality. RBI’s goal in this regard is to achieve harmony with international standard of credit risk management. All banks should follow uniform and reliable norms for reducing the problem of credit risk element in lending portfolio. The uniformity in credit risk management approach helps the banks to handle the deterioration of asset quality in the industry. The capital requirement is uniformly applied to all commercial banks as per the Basel Norms. This paper makes an analysis on the relevance of Basel norms in credit risk management practices of Indian banking Industry.