AN ANALYTICAL STUDY ON NPAS OF STATE BANK OF INDIA

Objectives: The main objective of this paper is to make an attempt to analytically study the basic reasons for increase in NPAs/analyze gross NPAs in SBI group and the measures taken so far and their impact. Method: Data is collected for the Variables namely Net Profit Margin, Return on Equity and Return on Assets, Gross NPAs to Gross Advances, Net NPAs to Net Advances, Cost to Income and Provision Coverage Ratio. Secondary data is collected for a period of 5 years i: e from 2014-15 financial year to 2018-2019 Financial Year. Statistical tool like percentage analysis is used to identify the reasons for increase in NPAs of State Bank of India. Result: It was found in the study that, the major sectors contributed for the increase in NPAs in SBI are mid and Large corporates and not the priority sector. NPAs are increasing from the last five years as shown in the ratios calculated. This is due to change in the method of projecting NPAs and stringent norms by RBI. Conclusion:The present paper analyzed and identified the reasons for increasing trend of NPAs in SBI group. SBI is in hope that it could see the development in coming years as they are expecting the resolutions for pending cases from the National Company Law Tribunal (NCLT).