Trend and pattern of non performing assets (NPA) in State Bank of India: 2007 – 2011

The quality of assets held by banks and financial institutions is a critical indicator of the health of the financial system. The global financial crisis and its repercussions on the Indian economy have made 2008–09 a testing year for the Indian Banking sector. NPAs (Non Performing Assets) are a necessary evil which cannot be avoided, as these are a natural product of the process of credit deployment. In the banking business the impact of NPAs hampers profitability. In this study we have made an attempt to analyse the trend and pattern of NPAs in State Bank of India, one of the leading bank in the Indian banking industry, for the period 2007 -2011. The study is an exploratory one and based on both primary and secondary data. We have analyzed the data using simple statistical tools and MS-Excel and reached to our conclusion.