Determinants of Banks' Profitability: An Empirical Study on Select Indian Public and Private Sector Banks

Title

Determinants of Banks' Profitability: An Empirical Study on Select Indian Public and Private Sector Banks

Creator

Raju M.

Description

In this study the determinants of banking profitability has been studied based on the secondary data. The entire study is classified into two parts (i) Public Sector Banks and (ii) Private Sector Banks. Various variables such as NPA, Operating Profit, Credit Size, ROA, Operating Expense, Total Income, Capital etc. and their interrelationship is studied through correlation coefficients, regression analysis, anova etc. The research observes that a large number of independent factors are responsible in determining banking profitability and that in those determinants some create a significant effect on profitability but some factors do not create any significant effect. It is observed that though macroeconomic variables are not so important to determine the profitability of a bank but the GDP growth rate creates a significant effect on determining the profitability of a bank. According to the study based on facts and figures collected, private sector banks performance is better than public sector banks. Indian Institute of Finance.

Source

Finance India, Vol-35, No. 2, pp. 467-479.

Date

2021-01-01

Publisher

Indian Institute of Finance

Coverage

Raju M., Christ University, Department of Management Studies, Hosur Road, Bhavani Nagar, Suddagunte Palya Karnataka, Bengaluru, 560029, India

Rights

Restricted Access

Relation

ISSN: 9703772

Format

Online

Language

English

Type

Article

Identifier

https://www.scopus.com/inward/record.uri?eid=2-s2.0-85131519452&partnerID=40&md5=58ecf91899b09919a032f2fb8c88bfc6