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A PCA Approach for Comparing Performances of Major Indian Banks During 2004-05 To 2013-14


Affiliations
1 T. A. Pai Management Institute, Manipal, India
2 Indian Statistical Institute, Kolkata, Ex-Dean PG Studies, Bidhan Chandra Krishi Viswavidyalaya, Nadia, West Bengal, India
3 T. A. Pai Management Institute, Manipal
     

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Principal Component Analysis is a well-known procedure, used extensively, applied in respect of the matter of comparison of financial performances. This paper first discusses the major methodologies for bank performance comparison and then compares performances of 37 leading Indian banks during the period 2004-05 to 2013-14 on yearly basis using the principal component analysis (PCA) approach. This study throws light on how the major banks have performed during the above-said period (on yearly basis) and also on a comparative evaluation of their performances (year-wise) over the mentioned period. The Principal Component Analysis (PCA)has revealed the nice result (information)that SBI has performed better than other banks in general over the abovesaid period excepting that in case of some years it has enlisted itself in the same category as with the ICICI bank in respect of performance, falling back the remaining Banks in the trail.

Keywords

Indian Banks, Bank Performance Comparison, Principal Component Analysis (PCA).
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  • A PCA Approach for Comparing Performances of Major Indian Banks During 2004-05 To 2013-14

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Authors

Subhabaha Pal
T. A. Pai Management Institute, Manipal, India
Satyabrata Pal
Indian Statistical Institute, Kolkata, Ex-Dean PG Studies, Bidhan Chandra Krishi Viswavidyalaya, Nadia, West Bengal, India
Kaushik Bhattacharjee
T. A. Pai Management Institute, Manipal

Abstract


Principal Component Analysis is a well-known procedure, used extensively, applied in respect of the matter of comparison of financial performances. This paper first discusses the major methodologies for bank performance comparison and then compares performances of 37 leading Indian banks during the period 2004-05 to 2013-14 on yearly basis using the principal component analysis (PCA) approach. This study throws light on how the major banks have performed during the above-said period (on yearly basis) and also on a comparative evaluation of their performances (year-wise) over the mentioned period. The Principal Component Analysis (PCA)has revealed the nice result (information)that SBI has performed better than other banks in general over the abovesaid period excepting that in case of some years it has enlisted itself in the same category as with the ICICI bank in respect of performance, falling back the remaining Banks in the trail.

Keywords


Indian Banks, Bank Performance Comparison, Principal Component Analysis (PCA).

References