TITLE:
Analysis of Financial Performance of Selected Commercial Banks in India
AUTHORS:
Palamalai Srinivasan, John Britto
KEYWORDS:
Financial Performance, Profitability, Solvency, Liquidity, Commercial Banks
JOURNAL NAME:
Theoretical Economics Letters,
Vol.7 No.7,
December
13,
2017
ABSTRACT: The present study attempts to evaluate the financial
performance of selected Indian commercial banks for the period from 2012/13 to
2016/17. The study comprises 16 commercial
banks, 11 representing public sector and 5 from private sector, and the
financial performance of these banks are analysed using the financial ratios.
The study shows that the financial performance of private sector banks is
relatively better than the public sector banks throughout the study period.
Besides, the study examines the impact of liquidity, solvency and efficiency on
the profitability of the selected Indian commercial banks by employing the
panel data estimations, viz. the
Fixed Effect and Random Effect models. The empirical results from the panel
data estimations revealed that the liquidity ratio and solvency ratio, and the
turnover ratio and solvency ratio are found to have positive and significant
impact on the profitability of selected public sector and private sector banks,
respectively, bearing testimony to the fact that profitability is a function of
those ratios.