A Study on Profitability of Private Sector Banks in India
Pradip Kumar Das*
Abstract: The article is an attempt to analyze the profitability position of Indian selected private sector banks based on the performances of profitability ratios. Banks in India have been undergoing major challenges in the dynamic environment over the years. With intense competition in the banking sector, booming profitability has been a major challenge to management. Because of its strategic importance in the national interest, it is crucial to evaluate the financial performance of banks for improving their profitability by knowing their triviality. Moreover, efficiency of banking sector has assumed primeval essence in a developing country like India due to its major offering towards the growth of economy. In the global ambience, new entrants of private sector banks in the banking industry have been the vanguard role in India’s financial system with their latest technology and new service-level. Banks, therefore, perpetually explore means to refashion the business to ameliorate profitability. These possible developments can be examined with strength of financial statement. This paper epitomizes an empirical study of profitability of the selected five leading private banks in India from diverse perspectives through varied statistical tools, graphs and tables, and offers suggestions for melioration of potency in the bank. The study embosoms that HDFC bank remains a transcending performer over the last five years in the private banking sector with premier in the profitability. Overall, the paper provides important spring of dexterity and is efficacious for bankers, practitioners and groundwork.
Keywords: Private sector banks, Profitability, India, Ratio, Management.
* Associate Professor, Jagannath Kishore College, Purulia, Affiliation to Sidho-Kanho-Birsha
University, Purulia, E-mail: firstname.lastname@example.org