A CRITICAL ANALYSIS OF IMPACT OF NPA ON STATE BANK

Abstract

SBI and its associates is the largest bank in the country. State Bank of India and its Associates (now merged in SBI) are playing a important role in the Indian economy. All over the world State Bank of India is a bank having Associates has branches. Accept deposit and lending is the main purpose of every bank and with the help of these transactions earns 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 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. In this paper the impact of Non-Performing Assets on the earnings of the State of India and its Associate is studied.
Not only that, impact of NPA on the EPS and the dividend paid to its stockholders also analysed.
Statistical tool like correlation 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.