ARCHIVES
VOL. 7, ISSUE 3 (2025)
Evaluating the financial implications of physical assets with reference to SBI: A case study
Authors
M Somaiah
Abstract
This study examines the role of physical assets in
influencing the financial performance of the State Bank of India (SBI), with a
focus on understanding how tangible resources contribute to profitability and
operational efficiency. The purpose is to evaluate the relationship between
various physical assets and financial performance, particularly Return on
Assets (ROA), and to derive strategic implications for asset management in the
banking sector. The research methodology (RM) adopts a quantitative approach,
utilizing secondary data from the CMIE Prowess database covering the period
from 2018–19 to 2022–23. Analytical tools such as multiple regression analysis Are
employed to assess the impact of physical assets on ROA, while correlation
analysis is used to examine the association between security measures and
financial performance. The findings reveal that security measures exhibit a
weak positive relationship with ROA, indicating a marginal improvement in
financial performance with increased security investments. In contrast,
physical assets such as net furniture, branches, employees, and ATMs show a
moderate negative relationship with ROA, suggesting inefficiencies in resource
utilization. The study concludes that while security enhancements support performance,
excessive expansion of physical assets may reduce profitability, emphasizing
the need for efficient asset allocation and strategic resource management.
Keywords: Physical Assets, Financial Performance, SBI, Return on Assets,
Regression Analysis, Banking Efficiency, Resource Management.
Download
Pages:18-23
How to cite this article:
M Somaiah "Evaluating the financial implications of physical assets with reference to SBI: A case study". International Journal of Commerce and Economics, Vol 7, Issue 3, 2025, Pages 18-23
Download Author Certificate
Please enter the email address corresponding to this article submission to download your certificate.