Financial parameters of selected nationalised banks in India

Abstract

The core of the monetary position of a country is Banks. They are the backbone of a sound economy which helps the nation as a whole in the growth path. After globalisation, many foreign and private sector banks have been set up in India and it has given rise to a tough competition among public sector, private sector and foreign banks. So, it is vital to analyse the performance of the banks, which may throw light on their strengths and weaknesses relating to an overall improvement. In this study, the performance is analysed using ratios like Profitability Ratio, Management Efficiency Ratio, Debt Coverage Ratio and Balance Sheet Ratio. The top five Nationalised banks (based on their Market Capitalisation in June 2018) have been selected for the study. They are Bank of Baroda, IDBI Bank, Punjab National bank, Central Bank of India and Canara Bank. The study has been done for a term of five fiscal years from 2013-14 to 2017-18. For this purpose, secondary data have been sourced from RBI and the individual banks’ annual reports and statistical tools like Mean and ANOVA used.