Financial Performance of Banks in India: Are Banks Sound Enough to be Banked Upon
Sunita Chaki1, Dr Kshamta Chauhan2, Anita Daryal3
1Sunita Chaki, Research Scholar, Amity University, Noida, India.
2Dr Kshamta Chauhan, Associate Professor, Amity University, Noida, India.
3Anita Daryal, Chief Manager- Law, presently posted in Oriental Bank of Commerce, Delhi, India.
Manuscript received on 08 August 2019 | Revised Manuscript received on 14 August 2019 | Manuscript Published on 26 August 2019 | PP: 1004-1010 | Volume-8 Issue-9S August 2019 | Retrieval Number: I11610789S19/19©BEIESP | DOI: 10.35940/ijitee.I1161.0789S19
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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: The seemingly untamable Non-Performing Assets are leading the Indian banks towards a highly unstable environment. The financial soundness of the banks is mandatory for any economy considering it is one of the most significant and a pre-requisite of a stable economy. The present study examines the financial performance parameters of banks with a probable variation among public and private sector banks for a period between 2005 and 2018. The study is divided into three sections. The first section studies the financial performance of the Scheduled Commercial Banks (SCBs), Public & Private Sector Banks in three identified time bands of last thirteen years. The second section assesses the probable variation in asset quality among Private and Public Sector Banks through statistical inferences. The third section finally examines the probability of variations in asset quality in the three time bands identified in the study. The study concludes a very high volatility among the SCBs during the said period and found Private Sector Banks to be more consistent and bore better stability parameters compared to Public Sector Banks. The statistically inferred results through T-test, Welch test and Post-Hoc test support a significant variation among both the sectors along with presence of significant variations in asset quality.
Keywords: Financial Performance, Asset Quality, Profitability, ROA, GNPA, CRAR, Capital Adequacy, Global Financial Crisis.
Scope of the Article: Industrial, Financial and Scientific Applications of All Kinds