This research aimed at finding out the number of non performing loan in the Head Office of PD BPR Bank Sleman, explaining the cause of non performing loan and analyzing the practice conformity of the policy implemented in the head office of PD BPR Bank Sleman in handling non performing loan with theory of Rescheduling, Reconditioning and Restructuring. The method conducted was descriptive analysis using primary data from interview with Head of Loan Division at PD BPR Bank Sleman. The interview was about factors that causes Non Performing Loan and the policy taken in handling it. Other than interview, the analysis also uses secondary data from financial statement in the form of credit quality according to time and productive asset quality. Based on the research result, the value of Non Performing Loan of the Head Office of PD BPR Bank Sleman durung 2010 – 2017 was in 0.61% - 1.63%. Based on the Regulation of Bank Indonesia No. 15/2/PBI/2013, the value of NPL was categorized into healthy criterion. It explained that the problems of non performing loan faced by the Head Office of PD BPR Bank Sleman was in healthy and not in worrying level. The cause of non performing loan was only from the debtor and other party, while there was no factor causing non performing loan from the internal part of the Bank. In addition, the policy implemented in the Head Office of PD BPR Bank Sleman in handling non performing loan has not been in accordance with the theory of Rescheduling, Reconditioning, and Restructuring.