“A comparative study of non-performing assets of State Bank of India and its associates with other nationalized banks”

The banking system in India had to serve the goals of economic policies enunciated in successive five year development plan, particularly concerning equitable income distribution, and balanced regional economic growth The strength and soundness of the banking system primarily depend on the quality and performance of the loan portfolio, i.e. the fulfillment of obligations by borrowers promptly. The asset quality is a prime concern and impacts various performance indicators, i.e., profitability, intermediation costs, liquidity, credibility, income generating capacity and overall functioning of banks. The NPA are considered as an important parameter to judge the performance and financial health of banks. If a bank has high NPA ratio then its performance is considered as weak than that of a bank with lower NPA ratio. It creates a bad effect on good will and equity value of the bank. State Bank of India and its associates are consider as a major group of banks in public sector which do influence the working capacity of its competitors. Loan lending capacity of every bank depends on its credit feasibility. The issue of NPAs has been discussed at length of financial system all over the world. The problem of NPAs is not only affecting the banks but also the entire economy of any country. The study is diagnostic and exploratory in nature and makes use of secondary data.