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Author(s):

Gayathri K | Mrs.Ramya
Keywords:

Non-Performing Assets (NPA), State Bank Of India (SBI), Gross NPA Ratio, Net NPA Ratio, Profitability, Provision Coverage Ratio (PCR), Capital Adequacy Ratio (CAR).
Abstract:
This Study Conducts A Comprehensive Empirical Analysis Of Non-Performing Assets (NPAs) In The State Bank Of India (SBI) To Assess Their Impact On The Bank's Financial Performance Over The Five-year Period From 2021 To 2025. NPAs Represent The Single Largest Cause Of Concern For The Indian Banking Sector, Threatening Profitability And Financial Stability. The Research Utilizes Secondary Data From SBI's Published Annual Reports, Applying Ratio Analysis, Trend Analysis, And Correlation/regression Techniques. The Analysis Reveals A Significant And Consistent Decline In Both Gross NPA (GNPA) Ratio (from 5.16% In 2021 To 1.85% In 2025) And Net NPA (NNPA) Ratio (from 2% To 0.47%), Indicating Effective Risk Management And Recovery Mechanisms. The Findings Confirm A Strong Inverse Correlation Between NPA Levels And Profitability Indicators Like Return On Assets (ROA) And Return On Equity (ROE). The Study Concludes That SBI's Sustained Financial Health And Leadership In The Public Sector Banking Space Are Directly Dependent On Its Ability To Maintain Control Over Asset Quality And Strengthen Its Credit Appraisal Framework.