Article
A STUDY OF LOANS AND ADVANCES OF SBI
Loans and advances constitute one of the most important functions of commercial banks and are the primary source of income for banking institutions. In the Indian banking system, the State Bank of India (SBI) plays a significant role in providing various loan and credit facilities to individuals, businesses, industries, agriculture, and government sectors. This study focuses on analyzing the loans and advances provided by SBI, their classification, lending policies, operational procedures, risk management practices, and financial performance. The project examines how SBI manages its lending portfolio while balancing profitability, liquidity, and credit risk. The study also evaluates recent banking trends between 2023–2025, including digital lending systems, retail loan growth, credit risk management, and RBI regulatory guidelines affecting lending operations. Primary data has been collected through discussions with bank employees and customers, while secondary data has been collected from SBI annual reports, RBI publications, banking journals, financial websites, and industry reports.The findings reveal that loans and advances significantly contribute to SBI’s profitability and market leadership. However, effective credit appraisal, recovery management, and risk assessment are essential for maintaining financialstability and reducing non-performing assets. The study concludes that SBI’s lending operations play a crucial role in economic development and financial inclusion. Adoption of technology-driven banking systems and strong credit management practices support sustainable growth in the banking sector.
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