Management of Non-Performing Assets (MNPs) is one of the biggest challenges facing the Banking sector today. Increasing NPAs adversely impacts the bottom line of banks. Banks cannot book income on such assets and they have to make provisions as per IRAC norms of RBI. The sound financial position of a bank depends upon the recovery of loans or its level of Non-performing assets (NPAs). To improve the efficiency and profitability of banks the NPA need to be reduced and controlled. Reduced NPAs generally gives the impression that banks have strengthened their credit appraisal processes over the years and growth in NPAs involves the necessity of provisions, which bring down the overall profitability of banks. This paper basically deals with the trends of NPAs and its impact on profitability in SBI and also provides some suggestions how to overcome this burden of NPAs on SBI.

KEYWORDS:  Non-performing Assets (NPAs), SBI, Net Profit, Net Worth, ROA, Profitability.