THE IMPACT OF DIGITIZATION ON THE PROFITABILITY OF SELECTED INDIAN BANKS: POOLED OLS MODEL APPROACH

Abstract

Purpose: The study assessed the relationship between digitization and bank profitability and provide insights into the banking industry. Design/methodology/approach: A pooled OLS model was adopted, using annual reports from a sample of Indian banks over a specific period. The analysis involved assessing the correlation between digitization and bank profitability while controlling for other relevant factors. Findings: The study found a strong and positive connection between digitization and bank profitability. The findings revealed that greater digitization efforts had a beneficial effect on the financial performance of the Indian banks examined. Practical implications: The study highlights the importance for Indian banks to prioritize and invest in digitization initiatives to enhance their profitability. It provides valuable insights for bank managers and policymakers in formulating strategies to leverage digital technologies for financial success. Research limitations: The study focused exclusively on Indian banks, limiting the generalizability of the findings to other banking systems and countries. Social implication: The study underscored the significance of digitization for Indian banks, suggesting that prioritizing digital initiatives contributed to their profitability and potentially stimulated economic growth in the country. Value: This study contributes value to the current body of literature by presenting empirical findings that shed light on the influence of digitization on Indian banks' profitability.