Loading article...
Loading article...
Stream/Area:
-
Subject:
-
Paper ID:
IJSREM65285
Volume:
10 |
6 |
Jun 2026
Pages:
1-8
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.
MBA
CMR Institute of Technology, Hyderabad
Master of Business Administration,
CMR Institute of Technology, Medchal, India
This study examines the impact of Non-Performing Assets (NPAs) on the profitability and operational efficiency of the State Bank of India (SBI) during the period 2021–2025. The study uses secondary data collected from SBI Annual Reports, RBI publications, journals, and other published sources. Financial indicators such as Gross NPA, Net NPA, Return on Assets (ROA), Return on Equity (ROE), Net Interest Margin (NIM), Cost Income Ratio, Operating Profit, and Profit per Employee were analyzed using ratio analysis, correlation, and regression techniques. The findings reveal that SBI significantly improved its asset quality, with Gross NPA declining from 5.0% in 2021 to 1.82% in 2025 and Net NPA reducing from 1.5% to 0.47%. During the same period, profitability indicators such as ROA increased from 0.45% to 1.06%, while operating profit and profit per employee showed continuous growth. Correlation analysis indicated a strong negative relationship between Gross NPA and ROA, confirming that higher NPAs adversely affect profitability. Regression results further demonstrated that declining NPAs positively influence profitability and operational efficiency. The study concludes that effective NPA management is essential for enhancing financial performance, operational efficiency, and long-term stability of SBI.
KEYWORDS
The study concludes that Non-Performing Assets (NPAs) have a significant impact on the profitability and operational efficiency of the State Bank of India (SBI). During the period 2021–2025, SBI successfully reduced its Gross NPA and Net NPA ratios, which contributed to improvements in key profitability indicators such as Return on Assets (ROA), Return on Equity (ROE), Net Interest Margin (NIM), Operating Profit, and Profit per Employee. Correlation and regression analyses confirmed that higher NPAs negatively affect profitability and operational performance. The findings highlight that effective NPA management, strong credit appraisal systems, and efficient recovery mechanisms are essential for maintaining financial stability, improving operational efficiency, and ensuring sustainable growth of the bank.
· State Bank of India. (2025). Annual Report 2024–25. Mumbai: State Bank of India Publications. · Reserve Bank of India. Report on Trend and Progress of Banking in India. Mumbai: RBI Publications. · Reserve Bank of India. Financial Stability Report. Mumbai: RBI Publications. · Reserve Bank of India. Handbook of Statistics on Indian Economy. Mumbai: RBI Publications. · Kaur, R. (2012). Management of non-performing assets in public sector banks. International Journal of Marketing, Financial Services & Management Research, 1(11), 86–94. · Rajaraman, I., & Vasishtha, G. (2002). Non-performing loans of public sector banks in India. Economic and Political Weekly, 37(5), 429–435. · Mishra, A. K. (2016). Impact of NPAs on profitability of banks. International Journal of Research in Commerce and Management, 7(4), 45–50. · Ghosh, A. (2017). Managing risks and non-performing assets in Indian banks. Journal of Banking and Finance, 8(2), 55–67. · Kumar, M., & Singh, R. (2019). Impact of NPAs on profitability and productivity of public sector banks. International Journal of Financial Management, 9(1), 15–28. · Batra, S. (2018). Analysis of non-performing assets in Indian banking sector. Journal of Commerce and Accounting Research, 7(3), 1–9. · Das, A., & Ghosh, S. (2020). Credit risk and bank performance: Evidence from Indian banks. Asian Journal of Finance & Accounting, 12(1), 45–60. · Sharma, P., & Gupta, N. (2021). Asset quality and operational efficiency in public sector banks. Indian Journal of Finance, 15(7), 24–38. · Reddy, Y. V., & Ramesh, K. (2022). Impact of non-performing assets on banking stability in India. International Journal of Banking Studies, 14(2), 60–75. · Shyam, K. (2023). Relationship between NPAs and profitability of SBI. Journal of Banking Research, 11(1), 34–48. · Verma, A., & Sinha, A. (2024). Trends in NPAs after banking sector reforms in India. International Journal of Financial Services, 16(3), 72–88. · Nayak, S., Kumar, R., & Sharma, P. (2025). Comparative study of SBI and ICICI Bank: Impact of NPAs on profitability and operational efficiency. Journal of Banking and Financial Management, 18(2), 91–108.
Publication Date
6/22/2026
Peer Review Type
Double-Blind Peer Review
Review Rounds: 2
Documents
Article Views
2
Total views since publication
PDF Downloads
2
Total downloads since publication
Geographic Reach
5
Digital Preservation: This article is permanently archived on Zenodo and complies with all data preservation standards across major indexing platforms.
Plagiarism Screening
This manuscript has been checked for plagiarism using TurnitinPlagiarismChecker software.
Conflict of Interest
The authors declare no conflict of interest related to this research work.
Funding Information
No funding information available for this research.
Related research in the same subject area
Loading similar articles...