Management Efficiency and Profitability of Selected Indian Public and Private Sector Banks

Management Efficiency and Profitability of Selected Indian Public and Private Sector Banks

Kumar J. (Sathyabama University, Chennai, India) and Thamil Selvan R. (Sathyabama University, Chennai, India)
Copyright: © 2019 |Pages: 10
DOI: 10.4018/IJKBO.2019010103

Abstract

Commercial banks play a vital role in the development of the industry and trade. The present article identifies management efficiency and profitability of selected Indian public and private sector banks. The study considered a sample of top ten banks (7 public sector banks and 3 private sector banks) for the period from April 1, 2005 to March 31, 2016. The study is based on the secondary data, procured and extracted from financial statements of the selected banks. The collected data has been analyzed using various financial ratios and statistical tools like geometric mean standard deviation and compounded annual growth rate have been accomplished.
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Review Of Literature

Muhittin oral and Reha Yolalan (1990) In their indicated that this kind of approach is not only complementary to traditionally used financial ratios but also a useful bank management tool in reallocating resources between the branches in order to achieve higher efficiencies. It has been also observed that the service-efficient bank branches were also the most profitable ones, suggesting the existence of a relationship between service efficiency and profitability.

R.K Uppal (2009) in his review found that there is a huge contrast, among the three banks as to the time clients need to spend to execute a business. The e-banks are more effective as to time consider. This is the essential component of moving of potential clients in e-banks.

Dr.Viakas Choudhary and Suman Tandon (2010) in their reviews found that the CAGR of different factors have demonstrated variety shape bank to bank. State Bank of Indore has demonstrated most extreme CAGR if there should be an occurrence of aggregate advances; add up to stores and aggregate resources. Punjab and Sink Bank has demonstrated the slightest development of stores and advances and State Bank of India has the minimum development of stores. CAGR of profit for value and profit for resources was at the pinnacle of United Bank of India despite Dena Bank, Punjab and Sind Bank have indicated negative trends in their ratios. Dwindle of NPAs ratio was most elevated in the event of State Bank of Hyderabad and slightest if there should be an occurrence of Dena bank.

K.N.V Prasad G. Ravinder, Dr. D. Maheshwara Reddy (2011) in their reviews titled ” A Camel Model analysis of public and private sector banks in India ” found that by and large Karur Vysya bank was at top most position was taken after by Andhra Bank, Bank of Baroda and furthermore it is watched that central Bank of India was at the base generally position. The biggest public sector banks in India benefited 36th position.

Saiful Islam and Md.Borak Ali (2011) in their reviews found that the consumer loyalty and reputation of the bank lead more loyalty. Subsequently, the discoveries of the review would open up another strategy for planning to keep banking benefit in creating region like Bangladesh. It will likewise direct the investors how well they could serve present and forthcoming clients. In fact, the review gives a structure to bankers to offer quality service.

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