Commercial Bank is the backbone of the development of our country. It mobilizes savings in urban areas and makes them available to large and small industries and trading units mainly for working capital requirements. It also serves various social objectives but there are many challenges facing by the commercial bank in its operations. The main challenge of commercial bank is to disbursement of funds in form of loans and advances. Loans and advances constitute the largest item of assets for bank. An account would become Non Performing Assets (NPA) if interest charged to that particular borrower is not realized despite the account being fully secured. In other words, NPA means that part of loans and advances which don’t generate regular income. It creates a big problem for the bank as well as an economy of any country. If there is a continuous increase in NPA then it is very dangerous for the existence of the bank because it hamper the repayment capacity of the bank. The sound financial position of bank depends upon the recovery of loans or levels of NPA. To improve the efficiency and profitability of banks the NPA needs to be reduced and controlled. This paper highlights the NPA of State Bank of India which is the largest public sector commercial bank of India. This study is based on secondary data which has been collected from the website of R.B.I., and selected banks and other authentic sources. This study has covered five years from 2017-18 to 2021-22. This paper finds that State Bank of India was suffering the problem of Non-Performing Assets. It badly effects on profitability position. To reduce the non-performing assets the management of S.B.I. must work efficiently and must take precautionary measures before granting the loan to borrower.

Keywords: Non-Performing Assets (NPA), Profitability, Return on Assets (ROA), Net Worth (NW).

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