INTERNATIONAL JOURNAL OF ENGINEERING MANAGEMENT AND
SOCIAL SCIENCES
(An International Peer-Reviewed Multi-Disciplinary Journal)
ISSN : 3139-065X
www.ijemss.com
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bhavani95466@gmail.Com
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This study compares the financial performance and Non-Performing Assets (NPAs) of State Bank of India (SBI) and HDFC Bank during the period 2022–2026. The study aims to evaluate the profitability, operational efficiency, financial stability, and asset quality of both banks. Secondary data were collected from the annual reports of SBI and HDFC Bank, RBI publications, and official websites. Financial performance was analyzed using Net Profit Ratio, Return on Assets (ROA), Return on Equity (ROE), Operating Profit Ratio, Debt-to-Equity Ratio, Gross NPA Ratio, and Net NPA Ratio. Ratio analysis, comparative analysis, trend analysis, and Pearson correlation analysis were used to analyze the data. The results show that HDFC Bank maintained better profitability and lower NPA levels than SBI during the study period. SBI also showed continuous improvement in reducing NPAs and enhancing its financial performance. The study found a negative relationship between NPAs and profitability in both banks. It concludes that effective credit risk management and timely recovery of bad loans are essential for improving financial performance and ensuring long-term sustainability. The findings will be useful for investors, researchers, bankers, students, and policymakers. Keywords: Financial Performance, Non-Performing Assets (NPA), SBI, HDFC Bank, Ratio Analysis, ROA, ROE, Profitability, Correlation Analysis, Banking Sector.