Analysis the relation between Net NPA to Advance by EXIM Bank and Total Loan & Advance given by EXIM Bank

T he performance and stability of financial organizations and inter connected to their asset quality and lending practices. This research analyses the link between the Net Non-Performing Assets (NPA) TO Advances Ratio and the Total Loans and Advances offered by the Export-Import Bank of India i.e. EXIM Bank. The Net NPA to Advances Ratio is a vital measure of asset quality and credit risk in a banking institution. A higher NPA ratio may indicate higher credit risk and ineffective recovery processes, potentially limiting a bank’s ability to lend. In contrast, a lower NPA ratio suggests good asset quality and robust financial management, enabling sustainable credit expansion. Thereby, assessing the bank’s financial stability and credit management practices. To fulfill these aims, the study employs a quantitative research approach based on secondary data analysis. Data spanning a 15- year period (2008-2024) were sourced from credible entities such as the Reserve Band of India, World Bank, Ministry of Commerce and Industry, and published reports of EXIM Bank. After using various statistical methods, this study suggests that the bank has generally maintained stable lending policies despite fluctuations in asset quality. Nonetheless, effective management and reduction of NPAs remain crucial to ensuring long-term financial sustainability, enhancing credit performance, and bolstering the bank’s role in supporting India’s export sector.