Title: Financial Performance of Indian Commercial Banks: An Analysis
Abstract: Financial performance indicates strengths and weaknesses of banks by adequately establishing a relationship between the items of balance sheet and profit-loss account. Analysis of financial performance of banks are the function of combined multiple factors like capital adequacy ratio, assets quality, management efficiency, earning capacity, liquidity and sensitivity to market risk. The objective of paper is to evaluate financial performance of Indian Commercial Banks. The paper is analytical in nature and used secondary data from the year 1998-1999 to 2012-2013 for analysis. The study comprised ten banks for study in which five from public sector and remains from private sector. Paper analyze the performance of banks based on capital adequacy, asset quality, management efficiency, earnings quality, liquidity and sensitivity to market risk and provides a ranking under each parameter by using the methodology of CAMELS approach, ratio analysis and t-test. Quantitative analysis of financial performance of Indian commercial banks was carried out on study and qualitative factors were ignored. The study conclude that there is no significant difference in overall financial performance of public and private sector banks in India but still there is a need to improve for making stable position in competitive market.
Publication Year: 2013
Publication Date: 2013-07-01
Language: en
Type: article
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