A Comprehensive Financial Analysis of SBI Bank: Addressing NPA Challenges and Solutions

Abstract

This research article delves into the financial performance of the State Bank of India (SBI), emphasizing the challenges and implications associated with Non-Performing Assets (NPAs). The study employs a mixed-methods approach, incorporating quantitative analysis of financial ratios such as Net Profit Margin, Return on Assets (ROA), and Gross and Net NPAs from 2019 to 2023. It also examines qualitative data from SBI’s annual reports, Reserve Bank of India publications, and relevant literature. Key findings reveal a gradual improvement in SBI’s financial health, driven by enhanced credit monitoring and recovery mechanisms, despite persistent challenges in managing industrial NPAs. Practical recommendations, such as strengthening risk management frameworks and leveraging digital credit monitoring, are proposed to mitigate these challenges. By providing statistical insights and actionable strategies, the research offers a comprehensive perspective on SBI’s efforts to maintain profitability while addressing systemic issues tied to NPAs.