‘Concentration Risk: A critical component of Credit Risk management in Banks’ was a Case Study, which was conducted for SBI and Associate Banks using secondary data. Twelve year data from 1996 to 2007 were collected from Reserve Bank of India report. Aim of our study was to analyse trends in Non-Performing Assets, Studying relationship of diversified portfolio of Credit Advances and Non-Performing Assets of SBI & its Associate Banks to explore the relationship between concentration risk profile and NPAs level. All eight banks under SBI group were selected for study. The occupation Index for the banks was obtained from RBI report. The relationship of diversified portfolio of advances namely Agriculture, Industry, Transport operators, Professional and other services, Personal loans, Trade, Finance and All others along with Non-performing Asset of SBI group were considered for the study. The study was extended to Rural, Urban, Semi-urban, Metropolitan and All India regions. To extract the relationship between NPA level of SBI & associate Banks and the concentration profile, coefficient of correlation was evaluated and test of significance was conducted by t- test. The results were verified through factor analysis and regression analysis between the parameters. It was found that the relationship between NPA of SBI & its associate banks had strong positive coefficient of correlation with individual NPA of banks.The concentration index of occupations Industry and Personal loan are significant in all the regions.The concentration index of occupations Trade and Agriculture are not significant in all the regions. The factor Analysis and the regression Analysis confirms the result obtained earlier.