FINANCIAL ANALYSIS OF STATE BANK OF INDIA
Sneha Dholi Ghosh1, Prof. Neha Verma2
1School of Business, Galgotias University
2School of Business, Galgotias University
ABSTRACT
As the top public sector bank in India, the State Bank of India (SBI) is essential to economic growth because of its extensive financial activities. In this study, SBI's financial performance is critically assessed throughout a ten-year period from 2015 to 2024 utilizing quantitative tools such trend evaluation using the Least Squares Method, correlation analysis, and financial ratio analysis. These techniques make it possible to fully comprehend SBI's profitability, asset quality, liquidity, and solvency—all of which are crucial indicators for evaluating the company's operational effectiveness and financial stability in a banking environment that is changing quickly.
The study uses information from RBI records, financial disclosures, SBI's audited annual reports, and other reliable secondary sources. Applying a linear trend model to the Net Profit data produced the following equation, which showed a substantial upward trend: y = 20,573.472 + 5,540.64x. The study's link between asset quality and profitability is a crucial component. A considerable negative association (r = -0.94) between Net NPA and ROE was shown using correlation analysis, highlighting the detrimental effect that growing NPAs have on shareholder returns. This result reaffirms the necessity of effective recovery plans and strong credit risk management.
Liquidity ratios and CAR were used to analyze liquidity and solvency. Better short-term obligation management and adherence to Basel III capital standards are indicated by the liquidity trend slope of 0.001086 and the CAR slope of 0.2333, which both show steady gains.
According to the report, SBI has experienced a noteworthy financial recovery overall, especially since 2019. This recovery has been fueled by increased profitability, improved capital strength, and operational enhancements. Regulatory requirements, credit risk, and general economic volatility continue to be obstacles, nevertheless. SBI must keep concentrating on digitization, cost reduction, and asset quality improvement if it is to maintain its growth.
