Impact of Ownership Pattern on the Profitability of the Nationalized Public Sector Banks in India

If an attempt is made to study the economic scenario of last 8 years or so, one can see that it has been very volatile for not only the Indian economy but also for the entire world economy. Most of the economies are in the process of recovery. Many investors have lost their money as the stock prices reached minimal levels in most of financial markets over the world during this period. The performance of banking sector always had a very significant impact on the performance of the national economies. In India, public sector bank dominates the entire banking sector as they account for over 80% of banking business in India. The performance of banks depends on so many factors. One of the important factors can be pattern of ownerships. If we look at the pattern of ownerships of public sector banks, we can find they are owned by entities like Government, Financial institutions, corporate entities and individual shareholders. The present article attempts to study how the pattern of ownerships has an impact on the performance of the banks in terms of two key variable, namely, RoA and net profit for the last two financial years, 2013-14 and 2014-15.