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Stream/Area:
-
Subject:
-
Paper ID:
10.55041/IJSREM.GSTCOS088
Volume:
10 |
7 |
Jul 2026
Pages:
1-6
Publication Frequency:
Monthly (12 issues per year)
License:International Journal of Scientific Research in Engineering and Management follows the Creative Commons Attribution 4.0 (CC BY 4.0) License, allowing free use and distribution with proper attribution.
Student of MBA,
CMR Institute of Technology, Hyderabad, Telangana, India
Student of MBA,
CMR Institute of Technology, Hyderabad, Telangana, India
This paper examines the effects of non-performing assets on the stability of the State Bank of India for the year 2020-2025. NPA causes several problems in banks, including loss of profitability, reduction in liquidity, and increased risks. The trend of Gross NPA and Net NPA will be analyzed and assessed for its influence on financial profitability ratios like Return on Assets, Return on Equity, Net Profit Margin, and Earnings per share. Secondary data related to the performance of SBI will be used for the analysis and is derived from the financial report of SBI and RBI. Results indicate that there was a marked decrease in Gross NPA from 9.98% to 1.82% and Net NPA from 2.32% to 0.46%, while profitability ratios were improved. It is concluded that credit risk management strategies, technological innovations, and recovery processes improved the profitability and financial stability of SBI.
KEYWORDS
The study concludes that Non-Performing Assets (NPAs) significantly affect the profitability, liquidity, and financial stability of SBI. High NPAs reduce earnings, increase provisioning requirements, and raise financial risks. However, SBI reduced both Gross NPA and Net NPA from 2020 to 2025 through improved credit appraisal, stronger recovery mechanisms, technological adoption, and effective risk management practices. As a result, key profitability indicators such as ROA, ROE, Net Profit Margin, Operating Profit Margin, and EPS showed improvement, strengthening investor confidence. The study highlights that continuous monitoring, strict lending policies, and efficient recovery systems are essential for long-term financial stability and sustainable growth
1.ResearchGate (2026) – "A Comparative Study of SBI and ICICI Bank (2015–2024)" explores the negative correlation between NPAs and return ratios, and effective legal recovery tools used by SBI. Access the full paper on ResearchGate. [1] 2.Science Publishing Group (2024) – "Non-Performing Assets (NPA's) – Impact on Financial Stability" provides a deep dive into how loan provisioning diminishes capital and hurts credit growth. Read the study on Science Publishing Group. [1] 3.ResearchGate (2025) – "Evaluating the impact of non-performing assets (NPAs) on functionality and profitability". Read it on The Economics Journal. [1] 4.ResearchGate (2025) – "Analyzing the Influence of Non-Performing Assets: A Comparative Study between SBI and HDFC". Available via ResearchGate. [1] 5.ResearchGate (2017) – "Impact of Non-Performing Assets on Working of Banks: A Comparative Study between SBI Corporate and SBI Patna Circle". Read it on ResearchGate. [1]
Publication Date
7/4/2026
Peer Review Type
Double-Blind Peer Review
Review Rounds: 2
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Conflict of Interest
The authors declare no conflict of interest related to this research work.
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