Journal of Commerce and Accounting Research

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Comparison of Financial Performance of Indian Banks Using Multi-Criteria Topsis


Affiliations
1 Management Science, Alliance University, School of Business, Karnataka, India
2 Alliance University, School of Business, Karnataka, India
     

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This study analyses the financial performance of Indian banks from three different points of view, viz. that of regulators, investors, and borrowers, using multi-criteria TOPSIS analysis. In particular, the financial performance of public sector banks is compared with that of private sector banks from these three points of view.
The results of study show that the three different points of view of banking performance are very consistent with each other. Further, the results of the study clearly indicate that, in the Indian context, private sector banks are performing significantly better than public sector banks, and all of the top-performing banks identified from the TOPSIS analysis are private sector banks. The better performance of private sector banks may be attributed to professional, efficient management, and better customer focus and service; while the worse performance of public sector banks may be partially attributed to lack of professional, efficient management and partially to political interference and constraints.

Keywords

Financial Performance of Indian Banks, Regulators, Investors, Borrowers, TOPSIS, Public Sector Banks, Private Sector Banks.
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  • Comparison of Financial Performance of Indian Banks Using Multi-Criteria Topsis

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Authors

Mihir Dash
Management Science, Alliance University, School of Business, Karnataka, India
Sarita Kumari Singh
Alliance University, School of Business, Karnataka, India
Saqeeb U. Rahaman
Alliance University, School of Business, Karnataka, India
Sajana Nadigadda
Alliance University, School of Business, Karnataka, India
Surbhi Srivastava
Alliance University, School of Business, Karnataka, India
Ankur Agrawal
Alliance University, School of Business, Karnataka, India

Abstract


This study analyses the financial performance of Indian banks from three different points of view, viz. that of regulators, investors, and borrowers, using multi-criteria TOPSIS analysis. In particular, the financial performance of public sector banks is compared with that of private sector banks from these three points of view.
The results of study show that the three different points of view of banking performance are very consistent with each other. Further, the results of the study clearly indicate that, in the Indian context, private sector banks are performing significantly better than public sector banks, and all of the top-performing banks identified from the TOPSIS analysis are private sector banks. The better performance of private sector banks may be attributed to professional, efficient management, and better customer focus and service; while the worse performance of public sector banks may be partially attributed to lack of professional, efficient management and partially to political interference and constraints.

Keywords


Financial Performance of Indian Banks, Regulators, Investors, Borrowers, TOPSIS, Public Sector Banks, Private Sector Banks.

References