Financial Performance of State Bank of India with Reference to Deposits and Advances-A Study

The financial strength of any bank depends on the advances and deposit mobilization. Bank is an economic institution playing an important role in the promotion of the economic upliftment of the country. Bank is a key economic agency on whose efficient functioning the whole economic progress of a country depends upon. Bank deposit growth fell to a five-decade low in fiscal year ended March 2018 as the demonetisation bonanza withered away and the lure of other savings instruments such as mutual funds and insurance eroded banking competitiveness. The present has been made on deposits and advances in State Bank of India. The State Bank of India is India’s largest commercial Bank in terms of assets, deposits, branches, number of customers and employees, enjoying the continuing faith of millions of customers across the social spectrum. In the present study techniques like correlation, t-test, chi-square and moving averages have been applied to find the relation between deposits and advances and interest on these two variables. For the purpose of the present study hypotheses were developed to test their significance. The end result suggests that there exists a strong correlation between the variables ie: deposits and advances and interests thereon and there is no significant growth in NPAs during the period of study. There was a negative growth in branch wise deposits and advances. The bank may make a branch wise study to find the different possible ways to attract the customers, especially small depositors and also make advances in small amounts so that many people can avail this benefit. The bank has to take stringent actions to recover the NPAs.