Bharath Project COMPLETE

A STUDY ON NON-PERFORMING ASSETS AT SBI
CHAPTER-1
INTRODUCTION
Introduction:
Introduction the state bank of india the state bank of india, the largest commercial bank in the
country was established on 1st july 1955 with passing of the state bank of india act 1955 by
taking over the whole of assets and liabilities of the imperial bank of india (Datta and
sundaram,1999).
Section 33 of the state bank of india act 1955 enabled the bank to extend its term finances to
large and small industries. Besides this, the state bank group was empowered with extensive
functions including the normal banking operations. Since then, there has been changing
dimension of the nature of working of the state banks’ group (Narsimha, 1967).
The bank group has important role to provide integrated credit to the rural sector. The financing
of priority sector is the basic aspect of banking operations in the rural areas. The state bank of
india has taken full advantages of the credit guarantees schemes started by the government in
conjuction with the reserve bank of india. The state bank has brought all its advances to small-
scale industries under this guarantees scheme (Narsimham, 1998).
In addition to these specific function, the state bank of india also extended financing to the co-
operatives marketing and processing societies. The financial assistance to warehousing facilities
is another aspect of the bank’s financing activity. The bank was implemented the lead bank
schemes by initiating the district credit plans in collaboration with other public sector banks’.
The bank has special credit schemes for employment generation (Chaudhary and sharma,2011).
In recent years, the bank has entered into merchant banking, innovative banking and capital
venture banking etc. its working includes the international business with help of its branches in
foreign. Hence, the state bank of india has multi-dimensional aspects of workings included with
normal banking business and innovative support to financial intermediaries in the capital as well
to money market of the countery (Basu, 2007).
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ADMINISTRATIVE MANAGEMENT COLLEGE
Theoretical background of the study:
Meaning of Non - Performing Assets:
Non - performing assets is a loan / advance for which thr re - instalment of princple or intrest or
both stays outstanding for a longer period in simple term non - performing assets means thr debt
were the re - payment is irregular its known has non - performing assets (NPA).
Definition of non- performing assets:
*If the bills obtained or marked down, the bill stays past due for a longer period such over 90
days.
*If an overdraft or cash credit propels, the record as a stay of " out of request" of averdraft/
money credit (OD/CC), if the wonderfull modify remains wealth of to extent attracting influence
as far drawing the power in each situation where theexcellent change in the vital working
records.
NPA came into Indian financial system with the information of prudential account standard. A
benefit, which include a rented resource, which turns into non- performing when it as stops to
produce salary to the bank such Non- Performing Assets may have especially characterized
credit inadequacies, which change the liquidation of the obligation and depicted by unmistakable
probability that a bank would support same misfortune, if the needs are not balanced properly.
Steps were taken to measure the borrowers account when the borrower re pays the remarkable
intreat and segment. in like different manner with the focal points are additionally named as:
*Non- performing assets.
*performing/ standard assets.
NPA is known as non- performing asset, the asset which are implies the various classification for
loans in the books of accounts which are default and have arrears on the payments of interest on
its initial amount. In certain cases, debts are being differentiated as non- performing, when
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advance instalments have not been paid for a period of 90 days or more.
Performing assets are the various differenced standard or the credits where the major period is
minimum 90 days through the end of the financial year. It does not cover any hazard to the
ordinary business.
The issue ofNPA is not troubling the bank even its influencing the whole economy and the size
of banking industries is comparatively more in public domian banks, an NPA is directed loan
system in commercial banks were it need 40% of credit level to its priority sector in the financial
system.
A report is proclaimed as NPA in the recuperation of portions on advances and process of

different perspectives according to RBI standards.
The RBI Guidelines:
To protect the banks and financial intuition the RBI sets certain Guidelines that are:-o banks
should have their own standard for their internal monitoring of their various accounts.
*They have to follow the FDCI and the classes of assets.
*The management has to be effectively enough and responsive in operating its conditions as
aspects in impact borrowing.
*If the longer period, then them arises a delay in the payments of accounts and the assets.
*There should be an appropriate loan certification to the auditors and the financial institutions
with the need of the bank.
The effects of NPAs:
The default of primary sum\ premium diminishes the income to the money lender which will
bring about disturbance of the plans and abatement the financial profit. NPA reduce earing
capacity if the assets.
The money blocked in NPA cannot be recycled for future use. In simple words, NPAs reduce
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advances turnover constantly affects the potential profits.
ProblemseffectedbyNPA
 Ahigh rateofinterestanddepositsratesmaybe chargedbythebankto re-distribute their losses

and the economic growth is being suffered by the financial markets.
 The owners won’t be receiving a return on capital in the market. It will be the worst case
if it fails the owner may has a chance of lose the assets.it may affect the shareholder pool.
 Non-performing loans will lead to bad investment some time. The credit may be
misallocated from the different good project due to which it won’treceive the failed
project.
 There is a fear of NPA s demoralize the operating staff. Sometimes the staff becomes
more sticky and rigid in handling the advances resulting to the inconvenience to genuine
client.
 The banking sector may spill by the NPA and might lead to the economic
disturbances.
CausesforNPAsinbankare:
An account doesn’t turn into an NPA overnight. It indicates the in-sufficientlybalances in

the loan where it had to take precautions to avoid the slippage of the record into NPA sector. An
interior survey taken by the RBI tells that the request of unmistakable quality.
INDUSRY PROFILE:
A bank is budgetary establishment that provides saving money and monetary administration to
their customers. it’s a monetary intuition that takes money from people and provides credit. It
also performs lending activities directly or indirectly through capital markets. Most of the
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country have institutionalized a system known as fractional reserve banking under which banks
keeps reserves equally to a portion of their current liabilities. It’s the most comprehended as a
foundation which gives basic savings money administrations, for example tolerating stores and
giving credits.
Comprehended as a foundation which gives basic savings money administration, for example
tolerating stores and giving credits.
There are additional non-managing accounts in the organization that leads to a few money
administrations without accepting the legitimate of a bank. A bank is a sub set related to money
industry.
The banking system in India comprises indigenous banking that is unorganized sector and also
modern banking known as organized sector. The unorganized sector means indigenous bankers,
private money lenders, shroffs, centibars, etc. while organized sector includes commercial banks,
development banks, regional banks, co-operatives banks and so on.
The central bank of India is known as reserve bank of India and apex body of banking
companies. With the rapid development of communication, transportation and industrialization,
the banking business has made a drastic progress in this modern era and its as became a part of
our daily life.
The Indian banking sector is maintained by RBI act of 1934. The BANKING REGULATION
ACT 1949 by issuing direction to the maximum number of deposits, the period and the rate of
interest they could offer on the deposits accepted. India reserve bank, provides different rules and
guidelines, polices and notifications on time to time to control the banking industries.
Indian banking system, as we see it today in India has come a long way. It’s transitioned from
unorganized system of lending and borrowing, passing through establishment of private banks to
nationalized, to liberalization and now facing the globalization of the financial world.
The organized system is well developed that it can compete with its international counterparts in
terms of modern technology, financial products and services, infrastructure, efficiency and
professional.
Structure of banking system in India
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Banking system in India is totally headed by the RBI, India has no central bank before the
formation of rbi. The rbi is known as a supreme monetary and a banking authority in regulating
the banking segments in India, it’s also known as reserve bank has it handles all the reserve of all
the commercial banks.
BankingsegmentinIndia
Concept of NPA:-
The concept of assets quality on the books of public sector banks and financial institution came
into bring when RBI introduce prudential standards on the recommendation by the Narasimhan
committee in the period of 1992-1993. As shown in the above information. the reform process
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banks booking income on an accrual basis and their balance sheets didn’t reflect their true
specified healthy truncations. thus, the profit and capital and reserve were overstated by them.
ASSETS CLASSIFICATION:
According to the guidelines of RBI, bank must classify their assets on an on-going basis.
the loan accounts have been classified into 4 categories as shown below.
CLASIFICATION OF NPA:-
1.Standard Assets.
2.sub-standard assets.
3.doubtful assets.
4.loss assets.
Standard assets: -
Standard assets are a standard resources and credits that administration are their
advantage and very important portions on time, in spite of all the fact they are
infrequently default up to 90 days. Standard resources are additionally known as
performing assets
Sub - standard assets: -
Sub-standard assets are the resources those credit resources that stays non-performing for a
time which is not equal to 1 year.
Doubtful Assets: -
The assets that become doubtful if it remains has sub-standard assets for a period of 1year.
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Loss Assets: -
The misfortune assets which are recognized as a sum has not been completely composed off.
There are most part which are uncollectible. There is a feasible esteem which is low to the
point that continuation as bankable resources are not guaranteed.
Types of NPA: -
The various types of NPA are: -
Gross NPA
Net NPA
Gross NPA: -
The gross NPA is a total sum of assets of the loan/credit account which have been classified
as NPA under the guidelines of RBI. the quality of loans has been reflected by the gross NPA
which have been made by the bank. It’s also including al classified assets.
Net NPA: -
The net NPA is the bank offers deductions for various assets. There is large amount being
included in the balance sheet of the NPA in India. They are different recovery process and
the written off the time in India.
Measurements taken against NPA are
The bank should lend loans with care.
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The major focus should be on the viability then the categorization.
The standard assets should be mechanism directly.
Credit appraisal skill has to be improved.
There should be prevention against slippage.
Recovery measure of NPA
There are various measures to be taken for the recovery it should be well planned by the
NPA management areas,
Non-legal measures: -
The certain compromises that are essential requirements for the recovery of the amount due
for the period. The bad debts are considered as legal process in loans. The study has been
detail in terms of future gains and quick sacrifice with the effective development decision has
been arrived.
Legal measures: -
There is various feature, which has no stamp duty payable, the recovery has to be quick. The
reports regarding should be submitted on given time period related to the operation by the
different regions.
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CHAPTER-2
COMPANY PROFILE
* The state bank of India is the oldest and largest public sector bank in Indian banking sector
with a market share of 25% in deposits and advance in the banking system. Founded in 1806, the
bank of Calcutta, the bank of Bombay and the bank of madras were merged by act of legislature
to from the imperial bank of India in 1921. In 1955 the imperial bank of India was nationalized
and renamed as SBI.
* The SBI group has strong brand image and a pan India presence with a wide reach in rural and
semi urban areas with 22,141 branches including 4841 branches of its 6 associate banks and
59,555 ATMs. it’s also operating outside the India too with 142 overseas offices spread over 32
countries.
* Retail banking has various outlets in countries banking. In starting it involves personal banking
actions and it gives loans to corporate clients who have good connections with bank branches in
the country banking category. This groups involves in organization agency and ATM service.
The banks national banking groups (NBG) such as personal banking, small & medium enterprise
(SMG) and government banking. The SBI groups recently started the general insurance &mutual
fund business as a joint venture with insurance Australia group.
* The SBI has its head quartered in Mumbai. the firm as held 216th in the fortune global list
around 500 competitors across the world’s biggest corporations of 2020
* As state bank of India, the largest commercial bank in the country as well has in bang lore with
deposits more than Rs. 20,44,751 crores. It’s one of the dominates to the Indian banking sector in
commercial banks with a market share 23.7% in terms of total banking sectors deposits.
* The increasing focus on updating the technology enabled it reach still larger and better service
levels, provide new delivery platforms and also improving the operations efficiency to counter
the threat of competition effectively. It has maintained very good relationship between the
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customers and by providing fair rate of interest on deposit. It also provides good service by many
modern facilities to their customers, such has, cash deposit machine, pass book printing machine,
cheque withdrawal machine and ATM.
* The CBS ( core banking solution) has been fully implemented with 22,141 branches and
59,555 ATMs of the state bank group and now it’s the strongest technology enabled distribution
network in India.
* The merger of all associate bank with the SBI have further strengthened it dominate position in
the banking industry as the country’s largest universal bank. A bank has activity involved since
1973 in nan- profit activity called communication service banking. All the branches and
administrative offices throughout the country sponsor and participation in large number of
welfare activities and social causes. Even through it has so many ups and downs, it has risen to
real heights to set itself up as model for others to follow.
The associate banks of SBI are-
1. state bank of Jaipur&Bikaner
2. state bank of Hyderabad
3. state bank of Patiala
4. state bank of Travancore and
5. state bank pf Mysore
* Now its merged with state bank of India from 1st April 2020 where the entire undertaking
of these 5 banks were taken by single universal bank. so that the bank can center on nonpayer.
* A lot people can avail many finances with the merger, where they can be benefited under a
single roof that makes easy to recovery the debts.
* The SBI is the 5th most popular online world financial website with 4.79 crores operators and
159 crores cash transaction for 12 months. NowadaysIndia is going to be digitalized and
becoming an accelerated move of new idea and technology during the year. on 24 November
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2017 SBI has launched its indies 1st comprehensive digital services platform called YONO an
acronym of you only needs one. state bank of India acquired 48.2% of the shares of yes bank as
part of RBI directed rescue deal in march 2020.
* State Bank of India (SBI)_ up more than four times the Rs 838cr figure reported in the
corresponding quarter of the previous year.
Listofcurrentdirectorsonthecentralboardofstatebankof India
Name Designation
Shri Dinesh Kumar Khan Chairman
ShriC.S. Settee ManagingDirector
ShriSwaminathan J ManagingDirector
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ShriB. Venugopal Director
PROMOTERS OF STATE BANK OF INDIA
Shareholders Shareholding
Promoters isGovernmentofIndia 56.92%
FIIs/GDRs/OCBs/NRIs 10.94%
BanksandInsuranceCompanies 10.63%
MutualFundsandUTI 13.72%
Others 07.79%
Total 100.0%
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VISSION,MISSION&QUALITYPOLICY
VISSION:
BethebankofchoiceforatransformingIndia.
MISSION:
Committedtoprovidingsimple,Responsiveandinnovativefinancialsolutions
PRODUCTS&SERVICESOFSTATEBANKOFINDIA:
State bank of India offers a different range of services to its client through its personal banking such as-
SBIHouse Loan
SBI offers financing rates which concessions on green homes as per SBI’s responsibilityto
Environment protection. The products given to its clients a onetime irrevocable choice to pick
one of the 3 customized combinations of fixed and floating rates on loans and also to pick the
request in which the fixed and floating rates will be benefited. The actual loan amount endorsed
is Rs 5lakh. wereits items areagain isolated into various types based on their term of
reimbursement and their loan and advances packages for example:-
SBIMarginhomeloans
Homeequityloans
NRIhouseloans
GramKnives
Greenhouseloan
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Surachathouseloan
Yuvalhouseloan
Realityhouseloans
Houseloanpal
hence, of the loans bank gives to its client which is agreeable to reimbursement
commitment. The Tenure of the loans and advances is equivalent to the
remainingmaturity of its initial house loans.
SBICarLoan
Thebankgivesitscustomersthebestcarloansplanwithanexcellentfavorandlesscost. A fast
view bythe clients of same plans accessible with different banks to shows that SBI
car/vehicle loans for new and old vehicles offer for the clients.
SBIEducationLoan
The bank gives term loan allowed to Indian nationals for seeking for higher education
in India or abroad where confirmation has been verified. All courses having work
prospects are qualified for securing education loans from banks.
SBILoanstoPensioners
The customers can benefit of a loan from their branch to meet their own expenses.
They can avail profit a loan of up to limit of a year annuity, subject to a roofing of Rs
1 lakh. The loan might be reimbursed over a 5years and will conveya low intreat rate
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of 13.25 % per annum.
SBILoansagainstShares/Debentures
The customer can take benefit of loans up to Rs 20 lakh against shares /debentures to
empower the, to meet the contingencies, own needs or outstanding to buy in to rights
or new issue of shares.
SBIAgriculturalLoans
The bank has provided the new products, to expand the stream of credit to the
agriculture sector in the year 2003-2004. The loans of agriculture business group
have raised from Rs 1,360 crore in 2003-2004 to Rs 34,933 crore in 2006-07 which
shows a raise of 2468.6%. Agricultural credit are givens to buy the assets which are
useful rural activities such as agribusiness, agriculture, plantation, sericulture,
farming, animal husbandry, fisheries, horticulture, so far., where the credit amount is
repaid over some undefined period of time which is limited to 3 years.
UnderthisagriculturalcredittherearedifferentsortsofbenefitsgivenbytheSBI through
its plans for example: -
KizanCreditcardplans
Landdevelopmentplans
MinorIrrigationplans
Farmmechanizationplans
KrishiPlusschemesforcustomizedhiringofTractortoRuralYouth
LeadBankschemesetc.,
SBIIndustrialLoans
SBI provides day today finance to meet the whole range of small -term finance
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requirementsthatraisesinsideacorporateworkingoperationalcycle.TheSBIworking
capital credit can help firms in financing inventories, overseeing its inside
moneystreams capital credit can help firms in financing inventories, overseeing its
inside moneystreams, internal part of cash flows, supportingsupplychains,
financingproduction and advertising operations, giving cash support to expand its
organizations and conveying current resources. The SBI corporate term credit can
support the firm in financing on current business development, reimbursing huge cost
loans, innovation, technology, up gradation, R&D consumption, utilizing the explicit
money streams that accumulate into a business, accumulating the early retirement
plans and enhancing day today capital.
Since,theBankexpandsthefundingsupporttohelpagriculturists,Industrialistsand poor
man in other modes.
PRIMARYSERVICES:
Acceptingdeposits
Accepting of deposits is the most important functions of modern commercial bank. It isthe
basics of all other activities of the bank. It accepts following kinds of deposits.
affixeddeposits
these are the deposits which are kept in the bank for a longer period the customer
who deposits in the bank are benefited not only by their money in the safe custody
but alsowith higher interest rate on their deposited money.
currentdeposits
these deposits are repayable on demand. A customer can deposit or withdraw their
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money anytime daily. There is no restriction regarding withdrawals from this

account. Banks usuallydon’t payinterest on demand deposits but a small rate of
interest is paid onlyfor a huge amount.
savingbankdeposits
these are the deposits on which the banks provide some interest and some restrictions
on the withdrawals. The customer is allowed to withdraw the the money twice in a
week and the rate of interest is lower compared to fixed deposits. This type of
account is usually opened by salary people to save a part in that.
Balanceandinterestrateforsavingaccountdepositors-
Deposits RateofInterest
BalanceuptoRs.1 crore 3.5%P.A
BalancemorethanRs.1crore 4%P.A
RecurringDeposits
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Recurring deposits gives its clients the elements of compensation to save at huge rate
of interest which is applied for term deposits in conjunction with the liquidity to
access the savings all the time. The Recurring Deposits is adjustable according to the
period of amount deposited along with the maturity which is limited from 1year to
120 months.It’s the lowest and minimum monthly deposit fund. The client will begin
a continuous deposit with the SBI for a monthly instalment of Rs one hundred only.
SBIRecurringDepositInterestRates-
Period RegularRD SeniorcitizenRD
1-2years 6.70% 7.20%
2-3years 6.75% 7.25%
3-5years 6.80% 7.30%
5-10years 6.85% 7.35%
Termdeposits
SBI provides secured and competitive interest rate and trust. And SBI maintain
Flexibility in time of term deposit from seven days to ten years. It also affords
reasonable low minimum deposit fund with SBI for an initial amount of Rs 1000
only. Clients of SBI can enjoy a loan/advances/overdraft facility against their money
deposited in the bank. The bank gives loan / overdraft which is limited to 90 percent
of their deposit fund in the personal cost.
b. Givingadvanceandloans
A2nd mainactivityofpublicbank isto givecredit and advances to itsloyal clients. Thisis
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a major function of performing where it can earn income. Bank grants loans to
business men for short time.it also lend and approve its customer personal security,
gold and silver, stock of goods of any rate.
SECONDARYSERVICE
Agencyservices
A bank enacts as agent to its customer. It pays behalf of its customers and pays
insurance premium, rent, taxes, bills etc. the bank also accepts the instructions
from the clients and make payments as and when its necessary. Bank charge few
amountas commission for this service. Banks transfer of money from one place
to another.
Generalservices
Thebankalsoperformsgeneralusestoitsclientssuchas,
Issueofloans,letterofcredits,draftsetc.
Lockerservices
Underwritingofoffers
Dealswithforeignexchanges
Reportsonvariousprojects
welfareprogrammed
Othergeneralfunctions
COMPETITORSOFSBI:
Somemajorcompetitors:-
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CanaraBank
IDBIBank
CentralBankofIndia
Bankof India
Punjabnationalbank
Indianbank
BankofBaroda
However,intermsofmarketshare,SBIstandasatallestandlargestplayerinthemarket.
SWOTANALYSIS
It is a vital tool to understand and to take decision for all the sots of crises in the
business and company, SWOT asses the strength, shortcoming, openings and dangers
required in a business.it also promoting conditions inside and outside the bank
STRENGTH
SBIisthefirstpublicsectortoopenandmovetheCBS
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ItholdstheownershipofthegovernmentofIndiawhichgivesahighliftinthe banking
industries.
SBI is a greatest bank in terms of market share in the country’s revenue, assets and
expenses.
Transparencyincharge
Safetyandsecurityofmoney
SBIoperatesmorethan35countriesacrosstheglobalwhichisclosedto200offices
SBIisanumberonemoverinthecommercialbankingserviceandtookoverthe advantage
of the commercial banking.
Recently, SBI merger its 5 more associate banks namely state
bank of Jaipur, Hyderabad, Patiala, Jaipur, Travancore and
Mysore to increase its share in the market and to protect
its position in the public.
WEAKNESS
Privatebankprovidingmorefacilitiesatlowestcharges
Youngpeopleareattractedbyprivatebanksduequickupgradeoftechnology.
Rigidworkculture.
Internationalexistenceislowwhencomparedtotheotherworldbanks.
MassivecompetitionwhichhasbeenlimitedthemarketshareextensionforSBI.
Lackofpropertechnologydrivenserviceswhenwedifferentiatetotheprivatebanks.
SBI has the hugest number of workers in the banking sector, since the bank invest a
substantial amount of its earnings in worker’s income.
In spite of digitalization, the banks are still following the
assumption of traditionalbank to the young customers.
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OPPORTUNITY
Nationalizesbankmorereliableandtrustworthy.
Expansionintorural,urbanandinternationalmarkettoboostitsbusiness.
Hence the bank has to be updated its few of operations in the banking sector, where
there is a lot off platform to use its advanced techniques along with the software
to ensure the relationship between its clients.
Thereis aPool oftalents to bereplaced in thetop management to give betterservices
to the upcoming generations.
On the focus of cashless India, the bank has influenced the market it its
vastoutcomes.
Banks have become more relevant with digitization and this will see an increase
inthe number of bank accounts aa well as for credit card usage.
Thebankhasavariousschemetoextendtheinvestmentinforeigndealingsasagood flow
of cash from the Asian retail.
THREATS
Privatebanksventuringintotherural.
Decrease of share in the market due to close competitors such as Canara banks and
various private banks like AXIS, Indian overseas bank, HDFC, ICICI Banks.
There have been a lot of issues lately on information theft and security. These
cyber threads may affect the image of the bank if not managed properly.
Foreign direct investments arepermitted in bankingindustries up to 50%, werethis is
amain problem to theSBI. As publicareattracted towards theforeign investment
for the more facilities and upgradation of technologies in the banking areas.
Apart from the SBI the other government banks such as Andhra, Punjab national bank,
Allahabad bank, Indian bank and bank of Baroda are also taking clients preference before
switch on to the private banks and monetary benefits are provided for credit and mortgages,
as SBI itself is elaborated towards its regulations and verification process and it has taken
huge period for it process.
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CHAPTER-3
Research design
INTRODUCTION
The research a logical & methodical scan for appropriate data on a particular topic the research is
art of scientific survey. Research is a systemized exertion to increase new information.
Research may be very broadly defined as systematic gathering of data and information and its
analysis for advancement of knowledge in any subject. Research attempts to find answer
intellectual and practical questions through application of systematic methods.
we all possess the vital instinct of inquisitiveness for, when the unknown comforts us, we
wonder and our inquisitiveness makes us problem and attain full and fuller understanding of the
unknown. this inquisitiveness is the mother of all knowledge and method, which man employs
for obtaining the knowledge of whatever the unknown, can be termed as research.
Research is an academic activity and as such the term should be used in a technical sense.
According to Clifford woody research comprises defining and redefining problems, formulating
hypothesis or suggested solutions; collecting, organizing, evaluating data; making deductions
and reaching conclusions; and at last carefully testing the conclusions to determine whether they
fit the formulating hypothesis. Steiner and Stephenson in the encyclopedia of social define
research as" the manipulation of things, concepts or symbols for the purpose of generalizing to
extend, correct or verify knowledge, whether that knowledge aids in construction of theory or in
the practice of an art".
Research is, thus, an original contribution to the existing stock of knowledge making for its
advancement. It is the pursuit of truth with the help of study, observation, comparison and
experiment. In short, the search for knowledge through objective and systematic method of
finding solution to a problem is research.
The systematic approach concerning generalization and the formation of a theory is also
research, as such the term ' research' refers to the systematic method consisting of enunciating
the problem, formulating a hypothesis, collecting the facts or data, analyzing the facts and
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reaching certain conclusions either in the form of solutions(s) towards the concerned problem or
in certain generalizations forb some theoretical formulation.
Statement of the problem:
* The enquire about particular issues, as a rule in refers to sum of problems where a specialist
experiences their involvement in it.
* The challenge of either a specific a hypothetical circumstance and wants to acquire an answer
for the same.
* The current dissertation has been embraced to do the problem of NPA in state bank of India.
Importance of the study:
(1) Most of the studies focused on NPA ratios ( gross NPA ratio and net NPA ratio) to assess the
assets quality and effectiveness of credit risk management.
(2) Very few studies were conducted examining the relationship between NPA and bank
performance and macroeconomic indicators.
(3) Only a few studies were conducted using bankers’ perception on incidence, impact and
management of NPA.
Need of the study:
the banking sector of India consists of public sectors banks, private sectors bank ,co- operative
banks and foreign banks. But among these four types public sector banks still dominate the
banking industry, with approximate 82% of the market share in total deposit and advances of the
industry. the public sector bank plays a crucial role in Indian economy, by contributing directly
to the GDP and mobilizing savings and channelizing investments. But after managing every
challenge successfully and by giving standard services to the customers, PA becomes the biggest
of all challenge of all challenges and managing NPA is one of the hardest tasks for these banks,
as the increasing NPA have adverse impact upon the progress of the Indian economy and the
financial system. On the other hand, NPA is efficiently managed by the private sectors banks and
by the private sectors banks and it is controlled.
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The current paper tries to draw a view on the status of the NPA of state bank of India (SBI).
Objectives of the study:
* To analyses the profitability of the bank and to understand the connection relating to the
mechanism of the bank.
* To understand the concept of NPA and the difference of assets classifications by the bank. And
to go through the precautions and measure taken by the bank to avoid NPA.
* To undertake study regarding working mechanisms of the SBI.
* To study the impact of NPA on working of the SBI.
* To make analyses of the profitability of the SBI.
Scope of the study:
* Study pertains the NPA in SBI and its overall impact on the bank’s performance.
* Study purely covers different strategies initiated by the bank to avoid the NPAs.
* The study takes deep into NPAs in different sectors and comparison of total and percentage of
NPA.
* Study depends on the data given by the bank and its sites.
* Survey and assess the aggregate size of the NPAs.
Collection of data:
*The research is basically found on secondary data were its in descriptive analysis, And the
sources of the data.
* The information is obtained from the account office, by branch managers, promoting research,
research reports, published articles related to NPA.
26 | P a g e
* The statistical information on NPA, bank- explicit and economic indicators have been
collected mainly from RBI and SBI websites, annual reports and other publications.
* The secondary data non- performing assets and the micro variable from 2015-16 to 2019-20
were collected from various issues of SBI annual reports and RBI bulletins.
* Amandeep (1991)
He aimed to calculated the benefit and productivity of Indian nationalized banks by go troughing
the effect and needed areas of loaning, credit policies, geographical extension, industrial
weakness, company rivalry, ancillary income, deposit companion, foundation costs, and put on
bank gainfulness. Here for this reason the trend examination by ratio analyst and regression
analyst were particularly utilized.
* C.S.Balasubramanian(2012)
His examination is mainly based on the Indian financial frame work on monetary sector to bring
down NPA in banking region and, to improve the productivity through large monetary
wellbeing’s in banks, in casual this examination is completely valuable to the financial specialist
in the banking area. And who are willing to invest equality shares.
* Charan Singh, Gaurav Sharada, Namrata Swamy,(2014).
Their investigation which looks at effect of international banking on Indian economy. In future,
it says about the different segments towards the international banking operations in the home
country regarding the certain of NPAs in the host countries, where India as suitable case for it.
* Dong (2002)
He tells about the idea of NPAs in the Indian financial framework and he talks about the key
variables which are configuration includes that would be very needful for the assets
reconstruction companies to assume a positive role in settling such NPAs.
* Monika Singla and Dr Sonia Narula (2014)
In their investigation "empirical study on non- performing assets of bank " which tells that the
27 | P a g e
miss board of bank in their positive connection between all advances, net benefit and NPA of
bank which is not at all useful for bank. Bank cannot afford offer credit to the new clients
because of lacking in its finance, which becomes outstanding NPA.
*Neha rani(2014)
"Analysis of non- performing assets of public sector banks " which tells i.e. shares of
nationalized banks is the first sector of NPA were it was large in 2008 but, after that it has
defined .Anyway, measure of NPA of two banks is completely expanded, anywhere there % of
offer in all NPA is reducing continuously.
* Parmar (2014)
He attempts to go thoroughly the current pattern of all advances, net NPA, net benefits, of SBI
bank. From past three years all advances and net benefits was demonstrated upward pattern in
the bank. so it has been highlighted the connection between net profit and net NPA, since SBI
indicated positive connection between net PA and net profit.
* Krishan Chaitanya. V (2012)
He conducted the research sating that a solid financial segment is more vital for thriving
economy. The disappointment on the financial part may have an adverse effect on other various
sectors also. The NPA is one of the main worries for banks in India. the NPAs which reflects its
affects and execution of bank. an abnormal state of NPAs which recommends high like hood of a
colossal number of credit defaulter which influence the value of assets.
* Mahi pal Singh Yadav (2011)
In this article "Impact of nan- performing assets on profitability and productivity of public sector
banks in India " where it has been started when banks directly / indirectly affect the economic
development through many factors. A deposits of this, consist question which has been raised
timely again and again on myriad restriction of the nationalized banks where it merely fulfils the
social agenda of the government sector and has been increased the NPAs of bank.
*Ponvannan. S (2011)
28 | P a g e
He stated that the NPA issues which causes problems and measures are taken to conclude the
banking industry where the bank has to undergo a major changes and challenges in the its phase
of economic liberalization, since its the important credit management which has been emerged in
current trending time banks are were taken precautions regarding to extend the loans, which
causes the mounting of NPAs.
* Amara, Aamir Azeem (2014)
Their research which utilizes the issues pf nan- performing credits is an essential part of banking
segments, hence it considered has an advancement period. As it understands the banker among
investors to moderate the issue of NPLs with respect to various techniques and strategies. the
effect of NPLs has been evaluated particularly in this investigation about the article with
information consists 16 main banks in spite of their sizes, and proprietorship by using panel fixed
effective model.
* Pradhan (2012)
In their study of management of NPA in commercial banks found that the high level of NPA
forced the banks to charge higher PLR interest rates. The major hurdle in efficient functioning of
banks is sluggish legal system of our country.
*Chatterjee. C (2012)
he tries to concentrate on the problems and conflict of NPAs, approach which are orders towards
RBI, activities of central government, situation of NPAs area wise and banking sector wise were
it at long last corrective measures for NPAs in India. His article which has made on a
comparative statement of NPAs of public and private part banks and international banks. while it
has additionally endeavored to understand the connection between NPAs net benefits and credit
recovery of NPAs by various ways.
*Maher (2017)
In his article mainly he has focused on how demonetization has impacted the most pivotal issues
of keeping traditional banking industry and digital banking sector. The short run of cash which
has effect of demonetization can been a huge problem in the level of NPA on bigger scale level
29 | P a g e
due to this he concentrated the current information which is available on day today newspapers,
but it as a good NPA level for a more drawn out run period he has anticipated. A present moment
towards beneficial outcomes of demonetization can be found in the present NPAs.
*Das and Dutta (2014)
studied the NPA of public sector banks in India using ANOVA and SPSS software. secondary
data collected from RBI website of 6 years (2008-2013). It was found that there is no significant
difference.
*Prashanth K Reddy (2002)
His explore is research on the theme of, "A comparative study of NPA in India in the global
context" which is analyzed through the same and various, remedial measure. In financial area the
change of India has advanced quickly on various assets like loan de regulations, decline in
secured requirements, limitations to pass the prudential standards and hazards dependent on
supervision. In this paper which deals with the experience of the change on the dimension of
NPA and recommends components to go through the issues by illustration on the experiences of
various nations.
*Reserve bank of India (2010)
The communicated information has been seen on NPA in various paper which leave been
benefited the including a rented resources, then it’sgotten in to be not used resource when it
doesn’t produce the actual income for bank.
*Research Gap:
From the above literature it was found that no study has been conducted from the period 2014 to
2017 in context of the objectives stated earlier in the study. So, the present scenario of Net NPA
of banking sector was not depicted by the above researcher.
30 | P a g e
HYPOTHESIS:
Hypothesis testing:- concerned with asset, we have developed Hypothesis on the data out
of 101, 72 people like performing asset. the people who are performing asset and believe it helps
to achieve business goals are 15
Ho: There is relationship between performing asset and non-performing asset through SBI.
H1: There is no relationship between performing asset and non performing asset through
SBI.
31 | P a g e
CHAPTER 4
Framework of analysis
TableShowingthepercentageofnetNPA
%ofNetNPA=NetNPA/GrossNPA*100
Years NetNPA GrossNPA Percentage
Mar 2020 51,871.85 172,750.36 2.23
Mar 2021 36,809.72 126,389.02 1.50
Mar 2022 27,965.71 112,023.37 1.02
showingthepercentageofnetNPA
32 | P a g e
Analyses
From theaboveinformation wecan seethat thenet NPAover gross NPAis 5.73%in the year FY
2018 and it was declined to 3.01% and again it raised to 2.23%.
Interpretation:
In the above information we can see that the net NPA (%) has declined by 15.64% in FY
2020 than 2022. Again, it has been raised by 4.36% in 2017 this shows the fluctuation in
the net NPA year by year. Since, the bank is advised to maintain the constants in the
upcoming years.
TableShowingthepercentageofGrossNPA
GrossNPA=GrossNPA/GrossAdvance* 100
33 | P a g e
Analysis:
The analysis of table tells the Gross NPA over Gross Advances in the year FY 2022 was
3.97%, in 20206.15% and at the year 2021 the percentage of gross NPA is 4.98%. This
shows the gradual raise in the gross NPA.
Interpretation:
After analyzation from the above table it’s clear that the gross advance and gross NPA is raising
when compare to previous years. Since the bank is advise to maintain same constant in the
upcoming years.
34 | P a g e
Tableshowingtheadvances
Years Advances
2020 2,325,289.56
2021 2,449,497.79
2022 2,7733,966.59
Analysis:
Fromtheabovetableitsshowsthattheadvancesareincreasingyearbyyear.
Interpretation:
After the analyzation from the above graph the advances are increasing from FY 2020 to 2021
and to 2020. Hence it shows that the bank performance is improved year by year since if the
advances are raised the value of NPA will decline.
TableshowingNPAaccountsofhousingloans
Years Amount NPARatio
2021 190,552 0.51
2022 222,605 0.55
35 | P a g e
showingNPAaccountsofhousingloans
Analysis:
TheabovetableindicatethepersonalloanstakenbytheSBIcustomersandwhichhas become
NPA for the Bank where it has been increased from 2021 to 2020
Interpretation:
The clear analyzation tells that the bank is trying to solve the problem of its customers by
increasing to great extended of loans.
36 | P a g e
TableShowingNPAaccountsofAutoloans.
2021 38,549 0.65
2022 46,736 0.65
AUTO LOANS
Analysis:
AstheabovetablestatesthattheautoloansaregivenwhichhasbecomeNPAs.Where there is a slight
37 | P a g e
increase from 2021.
Interpretation:
As the graph says there is increase in theyear 2022. And the depicts the customers whoowns the
auto and the account becomes non- performing for the bank.
TableShowingNPAaccountsofPersonalloans
2021 82,708 0.75
2022 111,143 0.55
showingNPAaccountsofpersonalloans.
38 | P a g e
Analysis:
TheabovetableindicatethepersonalloanstakenbytheSBIcustomersandwhichhas become NPA

for the Bank where it has been increased from 2021 to 2022.
Interpretation:
The clear analyzation tells that the bank is trying to solve the problem of its customers by
increasing to great extended of loans.
Tableshowingthepercentageofcapitaladequacyratio
Year Tier-I Tier-II
2014-2015 9.60 2.40
2015-2016 9.92 3.20
2016-2017 10.35 2.76
39 | P a g e
Showingthepercentageofcapitaladequacyratio.
Analysis:
As every bank needs to have capital reserve to compensate its NPA. Like that the above
table shows capital adequacy ratio which is based on 2 tier and this have been fluctuating
yearly.
Interpretation:
The clear analyzation says that the percentage of capital adequacy ratio has been divided into2
Base 1. Which is showing increased result in 1 tier and other one is fluctuating as shown in the
above graph.
40 | P a g e
TableshowingAssetsQualitysector-wiseGrossNPAfortheyear2021and2022
March2021 March2022
SECTORS
Amount %ofNPA Amount %ofNPA
Largecorporate 20,696 6.27 33,070 9.67
Midcorporate 41,515 17.12 47,009 19.35
SME 17,0.32 7.82 15,850 7.04
Agriculture 8,687 6.93 7,455 5.53
Retail 2,458 0.75 2,165 0.55
International 7,785 2.92 6,794 2.37
Total 98,173 6.50 1,12,343 6.90
41 | P a g e
SECTOR WISE
Analysis:
The table shows assets quality in sector wise of NPA for the 2021 and 2022.we can see
thatthe amount of various sector has been decreased compare to 2021.
Interpretation:
TheanalyzationsaysthatthedecreaseinthegrossNPAinsectorwisefrom2021to 2022.Hence it
advised to take certain measures to overcome.
TableshowingtheperformanceofprovisionforNPA
Years Provision
2019-2020 23581
2020-2021 26984
2021-2022 32247
42 | P a g e
showingtheperformanceofprovisionforNPA
Analysis:
FromtheabovetableitshowstheprovisionmadebytheSBI. itsshowsthattheprovisions are

increasing for certain extend.
Interpretation:
After the analyzation from the above graph, it has been increased towards 2020, Again it has
been increased in 2021 hence it should keep this development which is good sign for the bank.
43 | P a g e
TableshowingtheperformanceofcashrecoveryinNPA
Years Cashrecovery
2019-2020 4654
2020-2021 4992.13
2021-2022 5529.13
ShowingtheperformanceofcashrecoveryinNPA
Analysis:
FromtheabovetablethecashrecoveryinNPAhasbeenincreasingbytheSBI.
Interpretation:
After analyzation the performance of the bank is raised in cash recovery of the assetsin the FY
20,21 and 22. which the unrealized assets become standard assets constantly.
44 | P a g e
Chapter 5
Summary of Findings, suggestions and conclusions
FINDINGS:-
* As provision regarding NPA of SBI bank is raising from last three years where its raising from
23581,26984 to 32297.
* Another major findings that net NPA is 40% in previous year.
* The development of gross NPA and net NPA been raising year by year. If it raises or decline it
drastically effects the profits of the bank.
* There is a good relation between NPA and profits due to improper choice of customer by the
bank.
* After the merger, SBI has joined the league in which top 50 banks are in terms of resources.
* The gross NPA according to the sector is been declined in the previous year in each sector to
45%.
* The doubt-full assets are also raising from the year 2019 -2020 to 2021-2022 to 5%.
* The sub-standard assets are increasing from the year 2019-2020 to 2021-2022 to 2%.
* The loss of assets are also raising from the year 2019-2020 to 2021-2022 to 4%.
* The study has found that the management of non-performing Assets say that no statistically
significant variations in NPA of SBI.
45 | P a g e
* SBI has to work more on ensuring its services more reliable. Its important for all services
organization, that too in banking sectors.
* Bank should ensure that the employees deliver the services on time, as the time is very much
important factor will be purchasing of services.
SUGGESTIONS:-
In the period of the project, there was clear i.e., the NPA has major impact in the loan portfolio
which effect the balance sheet of the bank. then its ultimately effects the profit the banks.
However, the bank is also trying its best to decrease the % of the NPA in upcoming years.
* The SBI need to control its provision towards NPA by taking some precautions for the
recovery of the loans.
* Bank should proper choice the borrower and should keep good administration which is favor to
the borrowers.
*The SBI need to control its provision towards NPA by taking some precautions for the recovery
of the loans.
*Bank should proper choice the borrower and should keep good administration
which is favour to the borrowers.
*Bankneedtotakeprecautionsregardingthe credit assessment’s,andshould take
measures in pre and post sanction of the loans to avoid slippages and standard
assets of NPA.
*Recognitions of NPA in starting stage is very important and certain steps have to
be taken up to recover the loans and to minimize the NPA of bank.
*The bank needs to take some measures and action to recover the loans against
the borrowers for the fast recovery
*ThebankshouldhighlightthepotentialNPAsunderthespecialcategory.
*Bankshouldkeepmonitoringandshouldtakeimmediateactionsandremedies if it
founds miss usage.
*Bank should audit regularlyso that it can ensure the fringe which don’t slip to the
46 | P a g e
NPA category.
CONCLUSIONS:-
The issue regarding nonperforming assets havebeen a major issue for banking sector
inIndia. TheReserve Bank ofIndia, as given the guidelines and norms to SBIbank to
regulate the delince of NPA. The analysis on NPA regarding reference to SBI has
striated, to research beyond the circumstance of thenon-performing assetsand that effect
in the executionof the bank.
Over the range in the undertake usually NPA's have more impact in the evolution inthe
action of all monetary foundation effecting their benfits inthe report, It finally affect their
benefit’s however, it can been seen in this Bank also it try-out its maximum to decline its
NPA's and also taking agood precautions towards its reasons also.
To wrapup State Bank of India had improved to regulate awrong framework to decide a
NPA by which its hold a standard portfolios in the banking area. credit is revealed by the
report that StateBank of India NPA however, In hold its need a greatwatch to hold up and
lessons in the NPA to a lower segment that can boost the improvement of State Bank of
India.
I hereby conclude that the analysis of the facts and figures that the financial performance
of the state group as a researcher regarding NPAs at the SBI bank may be considered to
be satisfactory with little variations in quantum and in the percentage as not very
alarming.
47 | P a g e
BIBLIOGRAPHY
ANNUALREPORTS
TheannualreportsofstatebankofIndiafromtheperiodof2018 to 2022
REFERENCE
Amandeep (1991): The Impact of priority sector NPAs on banking sector: the Indian
perspective. INTERNATIONAL JOURNAL FOR INNOVATIVE RESEARCH IN
MULTIDISCIPLINARY FIELD,2(7), PP.180-187.
C. S Balasubramaniam(2012): The analysis nd investigateion ofIndianbanking system

tobring down NPA.
Charan Sing, Gaurav Sharda, Namratha Swamy(2014): The detail analysis of the impact
of foreign banks on Indian economy.
Prashanth K Reddy(2002): A comparative study of NPA in india in the global context.

The paper which deals with experiences of the reforms on the level of NPA.
Dong(2002):ThereviewofNPAsinIndianbankingsystem.Anreductionstrartegiesfor
commercial banks in india.pp.47-53.
Poongavanam,S.(2011),NPA:issues,causesandremedialsolution.Asianjournalof management
Research, Vol. 2,Issues-1.
MonikasinglaandDrSoniaNarula(2014):NPAofIndiancommercialbanks:Acritical
evaluation. AN INTERNATIONAL JOURNAL.
Neha rain(2014):A study of on NPA of public sector banks in india” . IOSR journal of
business and management ,vol 16, no mo. 11, pp. 75-85.
48 | P a g e
Parmar. R(2014):banking reforms-operational efficiency, the hindu press, madars.journal

of economy.Aug 2014,VPPK 3574.
Chatterjee. C (2012): “MANAGEMENT OF NPA -A CURRENT SCENARIO”

international journal of social science & interdisciplinary research vol. 1 issue 11, NOV
2012,ISSN 2277 3630.
Meher(2017):ImpactofdemonetizationonNPApositionofindianbanking
.INTERNATIONAL JOURNAL OF ADVANCE SCIENTIFIC RESEARCH AND

ENG. TRENDS.2(1),PP 1-8
Piyush and Goyel(2017): NPA and its measurements of correlations of different banks
and trend analysis in NPA of Indian bank international journal of
management,8(6),pp.81-88.
R .Santhanakrishna and Dr Ganesan(2017): “non-performing assets: :a study of

SBI .asian pacific journal of research, vol 1,No . pp81-88.
ReservebankofIndia(2010):impactofNPAsandguidelinesandpolicies.
Krishan Chaitanya.V (2012): A study on comparative analysis on NPA of

banks.indianjournal of finance management.pp23-45
Dr Tanmaya kumar Pradhan (2012):Analysis of NPA on the indian banking

industries.interantional journals of economics and management research 6(11).p 770-778
Amara ,Aamir Azeem(2014):NPA causes, precautions and expansions,Asian journal of

Indian management.p 105-115
Mahipal singh Yadav (2011):causes and remedies of NPA towards public sector
banks.indian research journal
49 | P a g e
WEBSITES:
www.sbi.co.inwww.m
oneycontrol.comwww.
rbi.comwww.npa.com
www.slideshare.net
TEXTBOOKS:
B.SRaman(advancefinancialmanagement-unitedpublications)
Annexures(Rs in crores)
BALANCESHEET
PARTICULARS Mar 2022 Mar 2021 Mar 2020
LIABILITIES
Capital 746,57,31 776,27,77 797,35,04
Reserves&surplus 127691,65,34 143498,15,83 187488,71,22
Deposits 1576793,24,50 1730722,43,61 2044751,39,47
Borrowing 205150,29,26 224190,58,61 317693,65,83
Other Liabilities and 137698,03,57 159875,57,46 155235,18,85

provisions
TOTAL 2048079,79,98 2259063,03,28 2705966,30,41
ASSETS
Cashandbalanceswith 115883,84,35 129629,32,53 127997,61,77

RBI
50 | P a g e
Balanceswithbank 38871,93,86 37838,33,12 43974,03,21
Investments 481758,74,78 477097,27,65 765989,63,09
Advances 1300026,39,29 1463700,41,75 1571078,38,11
Fixedassets 9329,16,42 10389,27,72 42918,91,79
Otherassets 102209,71,28 140408,4,51 154007,72,44
TOTAL 2048079,79,98 2259063,03,28 2705966,30,41
PROFIT AND LOSS ACCOUNT
PARTICULARS 2022-2021 2021-2020 2020-2019
INCOME
Interestearned 152397,07,42 163685,30,61 175518,24,04
Otherincome 22575,89,26 28158,36,01 35460,92,75
TOTAL 17497,96,68 191843,66,62 210979,16,79
EXPENDITURE
Interestexpended 97381,82,36 106803,49,21 113658,50,34
Operatingexpenses 38053,87,14 41782,36,65 46472,76,94
Provisionsandcontingencies 26435,69,98 33307,15,39 40363,79,25
TOTAL 161871,39,48 181893,01,25 200495,06,53
PROFIT
Netprofitfortheyear 13101,57,20 9950,65,37 1048,10,26
Profitbroughtforward 32,48 32,48 31,68
51 | P a g e
TOTAL 13101,89,68 9950,97,85 10484,41,94
APPROPRIATIONS
Transfertostatutoryreserve 4029,07,98 2985,19,61 3145,23,08
Transfertocapitalreserve 105,50,44 345,27,46 1493,38,64
Transfertorevenueandother 5889,05,56 4267,35,10 3430,54,64

reserves
DividendforthePY+Taxon 0 80 0
dividend
Dividendforthecurrentyear 2648,17,28 2018,32,20 2108,56,29
TaxondividendfortheCY 429,75,94 334,51,00 306,37,61
52 | P a g e

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A STUDY ON NON-PERFORMING ASSETS AT SBI

Theoretical background of the study:

Meaning of Non - Performing Assets:

Definition of non- performing assets:

*Non- performing assets.

*performing/ standard assets.

A report is proclaimed as NPA in the recuperation of portions on advances and process of

The RBI Guidelines:

*They have to follow the FDCI and the classes of assets.

The effects of NPAs:

advances turnover constantly affects the potential profits.

 Ahigh rateofinterestanddepositsratesmaybe chargedbythebankto re-distribute their losses

An account doesn’t turn into an NPA overnight. It indicates the in-sufficientlybalances in

Structure of banking system in India

Sub - standard assets: -

The various types of NPA are: -

Measurements taken against NPA are

The bank should lend loans with care.

The major focus should be on the viability then the categorization.

The standard assets should be mechanism directly.

Credit appraisal skill has to be improved.

There should be prevention against slippage.

Recovery measure of NPA

The associate banks of SBI are-

1. state bank of Jaipur&Bikaner

2. state bank of Hyderabad

3. state bank of Patiala

4. state bank of Travancore and

5. state bank pf Mysore

Shri Dinesh Kumar Khan Chairman

ShriC.S. Settee ManagingDirector

ShriB. Venugopal Director

PROMOTERS OF STATE BANK OF INDIA

Promoters isGovernmentofIndia 56.92%

of 13.25 % per annum.

money anytime daily. There is no restriction regarding withdrawals from this

BalanceuptoRs.1 crore 3.5%P.A

Period RegularRD SeniorcitizenRD

1-2years 6.70% 7.20%

2-3years 6.75% 7.25%

3-5years 6.80% 7.30%

5-10years 6.85% 7.35%

A2nd mainactivityofpublicbank isto givecredit and advances to itsloyal clients. Thisis

Statement of the problem:

Importance of the study:

Need of the study:

Objectives of the study:

* To undertake study regarding working mechanisms of the SBI.

* To study the impact of NPA on working of the SBI.

* To make analyses of the profitability of the SBI.

Scope of the study:

* Survey and assess the aggregate size of the NPAs.

sources of the data.

* Charan Singh, Gaurav Sharada, Namrata Swamy,(2014).

* Monika Singla and Dr Sonia Narula (2014)

* Krishan Chaitanya. V (2012)

* Mahi pal Singh Yadav (2011)

* Amara, Aamir Azeem (2014)

*Das and Dutta (2014)