Indian Journal of Economics and Development

Open Access Open Access  Restricted Access Subscription Access

Profitability and Productivity Analysis of Indian SCBs


Affiliations
1 Department of Commerce, University of Kalyani, West Bengal, India
 

Objectives: This study analyses the profitability and productivity of Indian SCBs in India. Banking industry forms a mechanism for industrial and agricultural growth as well as entails in the subsistence and welfare of the nation.

Methods/Statistical analysis: Simple random sampling without replacement method has been used to represent the universe. Yamane’s basic formula for determination of sample size has been considered and the profitability and productivity performance of 32 commercial banks are evaluated out of fifty commercial banks. This study is based on secondary data obtained from RBI database for the period from 2007-08 to 2016-17 and performances are analyzed adopting descriptive statistics and one sample t- test.

Findings: Descriptive statistics on the basis of five profitability indicators and four productivity indicators show that some Indian public and private banks are attaining high efficiency of productivity and profitability and t-test results supporting the findings, whereas some public and private Indian banks are having a very high inefficiency level during the sample period and t-test results supporting the findings.

Application/Improvements: In order to raise profitability and productivity, low-profit making banks should spell turnover strategies, income-oriented and cost-oriented strategies at regular periodical interval. Better management information system, credit monitoring and cash management can result increasing profitability and productivity.


Keywords

Profitability, Productivity, Commercial Banks, India, Descriptive Statistics, T-Test.
User
Notifications

  • A.K. Sharma, D. Sharma, M.K. Barua. Efficiency and productivity of Indian banks: an application of data envelopment analysis and Tobit regression. National Conference on Emerging Challenges for Sustainable Business. 2012; 1-11.

  • C. Rajendra Kumar. Research methodology. APH Publishing Corporation. New Delhi. 2008; 1-366.

  • K. Majid. Efficiency analysis by using data envelopment analysis model: evidence from Indian banks. International Journal of Latest Trends in Financial, Economics Science. 2012; 2(3), 228-237.

  • A.S. Kodan, K.S. Chhikara, S. Mehra, A. Yadav. Productivity of commercial banks in India: a bank group-wise study. IUP Journal of Managerial Economics. 2012; 10(1), 35-45.

  • B.K. Guru, J. Staunton, B. Balashanmugam. Determinants of commercial bank profitability in Malaysia. Journal of Money Credit and Banking. Working Paper, Multimedia University. 2002; 17, 69-82.

  • Petya, Koeva. The performance of Indian banks during liberalisation period. IMF working paper, No.3/150:1-33. 2003; 1-33.

  • N. Nathwani. The study of financial performance of banking sector of studies of India. Ph.D. thesis. Department of Commerce. Saurashtra University. 2004; 1-286.

  • V. Pal, N.S. Malik. A Multivariate Analysis of the financial characteristics of Commercial Banks in India. The IUP Journal of Bank Management. 2007; 6(3), pp. 1-14.

  • S. Kumar, R, Gulati. An examination of technical, pure technical, and scale efficiencies in Indian public sector banks using data envelopment analysis. Eurasian Journal of Business and Economics. 2008; 1(2), 33-69.

  • F. Sufian, R. Chong. Determinants of bank profitability in a developing economy: Empirical evidence from the Philippines. Asian Academy of Management Journal of Accounting and Finance. 2008; 4(2), 91-112.

  • D. Jha, D. Sarangi. Performance of new generation banks in India: a comparative study. International Journal of Research in Commerce and Management. 2011; 2(1), 12-17.

  • Elisa Menicucci, Guido Paolucci. The determinants of bank profitability: empirical evidence from European banking sector. Journal of Financial Reporting and Accounting, 2016; 14(1), 86-115.

  • O. Sharifi, J. Akhter. Performance of banking through credit-deposit ratio in public sector banks in India. 0International Journal of Research in Management &Technology. 2016; 6(4), 14-18.

  • T. Yamane. Statistics, an introductory analysis. 2nd Edition. New York: Harper and Row. 1967.

  • J. Paul, A. Mittal, G. Srivastav. Impact of service quality on customer satisfaction in private and public sector banks. International Journal of Bank Marketing. 2016; 34(5), 606-622.


Abstract Views: 247

PDF Views: 107




  • Profitability and Productivity Analysis of Indian SCBs

Abstract Views: 247  |  PDF Views: 107

Authors

Sudipto Jana
Department of Commerce, University of Kalyani, West Bengal, India

Abstract


Objectives: This study analyses the profitability and productivity of Indian SCBs in India. Banking industry forms a mechanism for industrial and agricultural growth as well as entails in the subsistence and welfare of the nation.

Methods/Statistical analysis: Simple random sampling without replacement method has been used to represent the universe. Yamane’s basic formula for determination of sample size has been considered and the profitability and productivity performance of 32 commercial banks are evaluated out of fifty commercial banks. This study is based on secondary data obtained from RBI database for the period from 2007-08 to 2016-17 and performances are analyzed adopting descriptive statistics and one sample t- test.

Findings: Descriptive statistics on the basis of five profitability indicators and four productivity indicators show that some Indian public and private banks are attaining high efficiency of productivity and profitability and t-test results supporting the findings, whereas some public and private Indian banks are having a very high inefficiency level during the sample period and t-test results supporting the findings.

Application/Improvements: In order to raise profitability and productivity, low-profit making banks should spell turnover strategies, income-oriented and cost-oriented strategies at regular periodical interval. Better management information system, credit monitoring and cash management can result increasing profitability and productivity.


Keywords


Profitability, Productivity, Commercial Banks, India, Descriptive Statistics, T-Test.

References