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Published in:
Indian Banking Structure: An Overview Read chapter Read first chapter

2017 | OriginalPaper | Chapter

6. Profitability

Authors : T. R. Bishnoi, Sofia Devi

Published in: Banking Reforms in India

Publisher: Springer International Publishing

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Abstract

Since 1991, public sector banks began to emphasize profitability objective in order to strengthen their net worth and financial health as necessitated under financial reforms, and therefore, the analysis is in terms of three profitability ratios—return on assets (ROA), return on equity (ROE) and profit margin (PM) for the period from 1991–1992 to 2014–2015. Positive trend in growth rates of these indicators suggested the favourable impact of banking reforms over the period. ROA of the public sector banks improved by 0.06% points, ROA annually by 1.05% points and PM by 0.69% points per year. Among determinants of banks’ profitability, significant factors were credit quality and management of funds.

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Literature
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Metadata
Title
Profitability
Authors
T. R. Bishnoi
Sofia Devi
Copyright Year
2017
Book
Banking Reforms in India

Print ISBN: 978-3-319-55662-8

Electronic ISBN: 978-3-319-55663-5

Copyright Year: 2017

DOI
https://doi.org/10.1007/978-3-319-55663-5_6