A study on non-performing assets of State Bank of India with special reference to Chintamani branch in Chikkballapur district, Karnataka

Non-performing assets are one of the major concerns for banks in India. NPAs reflect the performance of banks. A high level of NPAs suggests high probability of a large number of credit defaults that affect the profitability and net-worth of banks and also erodes the value of the asset. This paper analyzes the NPA levels of SBI Chintamani Branch. The purpose of the project is to know how NPA levels will affect the profitability of bank. The research design used was descriptive research. The study has been carried out with the help of annual reports to determine the level of non-performing assets. The research processed, tabulated and analyzed using with appropriated graphs. Statistical tools like t-test, correlation and regression used to test hypothesizes with the help of SPSS.21. The result showed that, there was a gradual decrease in the percentage of NPA during the last four year, and again 2012–13 is increased. This is achieved by adopting the various strict recovery measures by bank. Trend percentage of Gross Advances recorded continuous increasing trend from 100 per cent to 882.04 per cent from the year 2008–09 to 2012–13. Trend percentage of Gross NPA sowed increasing trend till 2011–12 later it skipped to very high level in the year 2012–13. There is actual correlation between Priority Sector NPAs and Non priority Sector NPAs in contribution of Total NPAs of SBI bank in Chintamani branch during the study period.Also the result showed the significant impact of Non Priority Sector Advances on Total NPAs of SBI bank in Chintamani branch during the study period.