ICTACT Journal on Management Studies

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An Empirical Study on Bank Specific and Institutional Specific Factors Delineating Key Profitability Indicators of Nationalised Banks in India


Affiliations
1 School of Management Studies, Bannari Amman Institute of Technology, India
2 Department of Commerce, PSG College of Arts and Science, India
     

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This paper concentrates on the impact of bank specific and institutional specific factors on the profitability of nationalized banks in India by considering three major profitability indicators such as Return on Assets (ROA), Return on Equity (ROE) and Net Interest Margin (NIM) for a period of 15 years from 2000-01 to 2014-15. The collected data have been analyzed by applying the statistical tools such as descriptive statistics, correlation analysis and multiple regression models. The results ensured statistically significant relationship among the bank specific and institutional specific variables such as Rural and Sub-Urban Branches to Total Branches (RSUBTB), Net Profit to Total Assets (NPTA), Logarithm of Total Assets (LGTA) and Operating Profit to Total Assets (OPTA) with that of the profitability factors namely ROA, ROE and NIM.

Keywords

Bank Specific, Institutional Specific, Nationalized Banks, Profitability Indicators.
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  • An Empirical Study on Bank Specific and Institutional Specific Factors Delineating Key Profitability Indicators of Nationalised Banks in India

Abstract Views: 234  |  PDF Views: 0

Authors

S. Gokul Kumar
School of Management Studies, Bannari Amman Institute of Technology, India
M. Jayanthi
Department of Commerce, PSG College of Arts and Science, India

Abstract


This paper concentrates on the impact of bank specific and institutional specific factors on the profitability of nationalized banks in India by considering three major profitability indicators such as Return on Assets (ROA), Return on Equity (ROE) and Net Interest Margin (NIM) for a period of 15 years from 2000-01 to 2014-15. The collected data have been analyzed by applying the statistical tools such as descriptive statistics, correlation analysis and multiple regression models. The results ensured statistically significant relationship among the bank specific and institutional specific variables such as Rural and Sub-Urban Branches to Total Branches (RSUBTB), Net Profit to Total Assets (NPTA), Logarithm of Total Assets (LGTA) and Operating Profit to Total Assets (OPTA) with that of the profitability factors namely ROA, ROE and NIM.

Keywords


Bank Specific, Institutional Specific, Nationalized Banks, Profitability Indicators.

References