Paper Contents
Abstract
This study examines the critical issue of Non-Performing Assets (NPAs) in the State Bank of India (SBI), the largest public sector bank in the country. NPAsloans or advances overdue for more than 90 dayspose serious challenges to banks by affecting profitability, liquidity, capital adequacy, and reputation. Given SBI's extensive operations, managing NPAs is vital. The report investigates the classification, causes, and impact of NPAs, identifying internal and external contributors such as borrower default, economic fluctuations, sectoral crises, and regulatory shortcomings. It also explores SBIs management strategies, including legal measures like the SARFAESI Act, loan restructuring, provisioning norms, and the integration of fintech tools for monitoring and recovery.Additionally, the report evaluates the influence of government schemes and regulatory frameworks such as the Insolvency and Bankruptcy Code (IBC), Credit Guarantee Schemes, and RBI guidelines, which have enhanced transparency and accountability in NPA resolution. Using a mixed-methods approach, the study combines a qualitative review of secondary data with quantitative analysis of NPA ratios, recovery rates, and provisioning coverage to assess trends and effectiveness. The findings highlight key triggers of NPAs, the evolution of SBIs risk management practices, and the impact of policy reforms. The study concludes with insights for policymakers and researchers, acknowledging limitations like the lack of primary borrower data and recommending future research using real-time analytics and cross-bank comparisons.
Copyright
Copyright © 2025 Dhruv Kumar. This is an open access article distributed under the Creative Commons Attribution License.
