Profitability of Indian Public and Private sector Banks – Empirical Evidence
Jain Mathew1, C J Davis2
1Jain Mathew*, Professor, School of Business and Management, CHRIST (Deemed to be University), Bangalore.
2C.J. Davis, Research scholar, CHRIST (Deemed to be University), Bangalore.
Manuscript received on March 15, 2020. | Revised Manuscript received on March 24, 2020. | Manuscript published on March 30, 2020. | PP: 4375-4378 | Volume-8 Issue-6, March 2020. | Retrieval Number: F9764038620/2020©BEIESP | DOI: 10.35940/ijrte.F9764.038620
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: Banking sector reforms in the last 25 years has made the Indian banking sector vibrant and strong. Banking reforms rationalized banking system by opening new private sector banks, prudential norms for quality of asset, deregulation of interest rates and digital banking. Major players in Indian banking sector are the public sector banks. Study explores fundamental profitability determinants of public and private sector banks in India. The study selected eight banks each from public and private sector banks in India for eighteen years, from year 2000- 2001 to 2017- 2018.The Global banking benchmark on profitability, ROA is considered as the dependent variable. Bank specific, Industry level and Macro level Independent variables were analyzed to find out the fundamental variables significant to the profitability of public and private sector banks. The study uses fixed effect and Pooled OLS model to explore fundamental variables determining the profitability.
Keywords: Profitability, Public sector banks, Private Sector Bank, Return on Asset, Fixed Effect, Pooled OLS Model.
Scope of the Article: Residential, Commercial, Industrial and Public Works.