SBI stands for State Bank of India, which is one of the largest public sector banks in India.

In
terms of role, function, responsibility, and NPA (Non-Performing Assets), here are some key
points:

Role: SBI plays a critical role in the Indian economy by providing a wide range of financial
services to individuals, businesses, and government entities. Its role includes accepting
deposits, providing loans, offering investment services, and providing other types of financial
products and services.

Function: SBI operates as a commercial bank and provides a variety of financial services to
its customers. Its functions include accepting deposits, processing loans, managing
investments, and providing other financial services such as insurance, credit cards, and online
banking.

Responsibility: As a public sector bank, SBI has a responsibility to serve the needs of the
public and promote economic growth. It has a responsibility to manage its operations in a
responsible and ethical manner and to comply with all relevant laws and regulations.

NPA: Non-Performing Assets (NPAs) refer to loans or advances that are in default or have
not been paid back by the borrower for a certain period of time. NPAs can have a significant
impact on the financial health of a bank. SBI, like other banks, has a responsibility to manage
its NPAs effectively and take steps to minimize their impact on its financial performance.

How does SBI manage its NPAs?

SBI employs various strategies to manage its Non-Performing Assets (NPAs). Here are some
of the ways SBI manages its NPAs:

1. Loan restructuring: SBI offers loan restructuring options to borrowers facing financial

difficulties. This helps borrowers to repay their loans and prevent them from
becoming NPAs.

2. Recovery through legal means: SBI takes legal action against defaulters to recover its
dues. This includes filing lawsuits, attaching and auctioning off the defaulter’s assets,
and other legal measures.

3. Securitization and asset reconstruction: SBI can sell its NPAs to Asset Reconstruction

Companies (ARCs) or securitize them. This helps SBI to recover some of its dues and
reduce its NPA burden.

4. One-time settlements: SBI may offer a one-time settlement option to borrowers who

are unable to repay their loans. This involves accepting a lump sum payment from the
borrower in exchange for writing off the remaining debt.

5. Recovery through SARFAESI Act: SBI can use the Securitization and Reconstruction
of Financial Assets and Enforcement of Security Interest (SARFAESI) Act to recover
its dues from defaulters. This includes taking possession of the secured assets and
selling them to recover the dues.
Overall, SBI employs a range of strategies to manage its NPAs effectively and minimize their
impact on its financial health.