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Profitability and Productivity Analysis of Indian SCBs
Objectives: This study analyses the profitability and productivity of Indian SCBs in India. Banking industry forms a mechanism for industrial and agricultural growth as well as entails in the subsistence and welfare of the nation.
Methods/Statistical analysis: Simple random sampling without replacement method has been used to represent the universe. Yamane’s basic formula for determination of sample size has been considered and the profitability and productivity performance of 32 commercial banks are evaluated out of fifty commercial banks. This study is based on secondary data obtained from RBI database for the period from 2007-08 to 2016-17 and performances are analyzed adopting descriptive statistics and one sample t- test.
Findings: Descriptive statistics on the basis of five profitability indicators and four productivity indicators show that some Indian public and private banks are attaining high efficiency of productivity and profitability and t-test results supporting the findings, whereas some public and private Indian banks are having a very high inefficiency level during the sample period and t-test results supporting the findings.
Application/Improvements: In order to raise profitability and productivity, low-profit making banks should spell turnover strategies, income-oriented and cost-oriented strategies at regular periodical interval. Better management information system, credit monitoring and cash management can result increasing profitability and productivity.
Keywords
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