Effects of Non-Performing Asset on SBI: A Sys...

Effects of Non-Performing Asset on SBI: A Systematic Analysis

Author Name : Arijit Banerjee

ABSTRACT

SBI and its associates is the largest public bank in the India. As a result State Bank of India plays an important role in the Indian economy. State Bank of India has branches all over the world.

Accept deposit and lending is the main purpose of every bank. With the help of these transactions banks earn profits. State Bank of India and its Associates are public banks and performing the same functions. Lending is main source of earning of a bank and similarly lending customers can be good and can be bad. Bad customers of a bank turn its assets into non-performing assets.

So in the above scenario a research paper is constructed. The impact of Non-Performing Assets on the earnings of the State of India and its Associate is studied in this paper.

Not only that, we try to find out the future earnings and NPA of the SBI.

Statistical tool like correlation, t test, regression analysis is used to reveal the results. Data of 10 years i.e. March 2011- March 2020 is taken into consideration from the website of Reserve Bank of India.

Keywords: Earnings, EPS, NPA, PAT, State bank of India and its associates.