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Research Paper | Management | Volume 15 Issue 4, April 2026 | Pages: 968 - 971 | India
A Study on Comprehensive Non-Performing Assets in State Bank of India with Trend Analysis
Abstract: This study examines the trends and management of Non-Performing Assets (NPAs) in India and Tamil Nadu, with reference to the banking system regulated by the Reserve Bank of India. NPAs represent loans where the borrower fails to repay interest or principal within a specified period, affecting the profitability and stability of banks. The study focuses on the classification, growth, and reduction of NPAs over the last decade, highlighting their impact on the financial performance of banks. The analysis reveals that NPAs in India increased significantly between 2014 and 2018, reaching a peak due to factors such as weak credit appraisal, economic slowdown, and excessive lending to risky sectors. A similar trend was observed in Tamil Nadu, although the magnitude was comparatively lower. After 2018, both India and Tamil Nadu experienced a steady decline in NPA levels, reflecting improvements in loan monitoring, recovery mechanisms, and regulatory measures. The study also emphasizes the role of priority sector lending in economic development, as banks are required to provide credit to sectors such as agriculture, small-scale industries, and self-employed individuals. While this supports inclusive growth, it also increases the risk of NPAs due to the financial vulnerability of these sectors. Overall, the findings indicate that effective risk management practices, strict regulatory policies, and technological advancements in banking have contributed to the reduction of NPAs in recent years. The study concludes that continuous monitoring, responsible lending, and strong recovery systems are essential for maintaining a healthy banking sector and ensuring sustainable economic growth.
Keywords: Non-Performing Assets (NPA), Banking Sector, Reserve Bank of India, Loan Management, Credit Risk, Asset Quality
How to Cite?: Dr. Umamaheswari S, Belsipha A, Bijjam Sri Harshini, "A Study on Comprehensive Non-Performing Assets in State Bank of India with Trend Analysis", Volume 15 Issue 4, April 2026, International Journal of Science and Research (IJSR), Pages: 968-971, https://www.ijsr.net/getabstract.php?paperid=SR26416183417, DOI: https://dx.dx.doi.org/10.21275/SR26416183417