The study looked at how factors like capital adequacy, operational expenses, loan deposit ratio, and non-performing loans affect the return on assets of state-owned banks from 2014 to 2022. They found that non-performing loans have a negative impact on net interest margin, while capital adequacy has a positive effect. Operational expenses and loan deposit ratio do not affect net interest margin. Capital adequacy and operational expenses negatively impact return on assets, while loan deposit ratio has a positive impact. Non-performing loans do not affect return on assets. The study also found that net interest margin does not moderate the relationship between these factors and return on assets in state-owned banks.