INTRODUCTION: Quality management is essential for improvement of inventory management and a performance monitoring. It is critical in blood bank to decrease discard rate of blood and its components. This study was done to analyse blood and its components discard rate and the reasons in a blood bank set up of Shri Shankaracharya Institute of Medical Science, Bhilai. MATERIAL METHODS: It was a retrospective study from 01 January 2019 to 31 December 2019. Data was captured from records and analysed for blood and its components usage and discard rate individually and cumulatively. Reasons were than analysed for blood and its components discard. OBSERVATION: A total of 59 whole blood were discarded out of 2481 bags. Seropositivity was the main reasons for whole blood discard and HBs antigen positivity was the most common reason for seropositivity of whole blood. Total of 261 components bag were discarded among 1307 bag prepared. Discard rate of platelets was highest followed by FFP and packed red cells. Total discard rate in this study was found to be 10.76%. CONCLUSION: This study reflects high discard rate and recommends strictly following of standard procedures for manufacture, storage and transfer of blood and its components bag. Also, it recommends better inventory management by supervision for reduction of discard rate of blood and its components.