Determinants of Profitability of Indian Public Sector Banks

Abstract

In this study, we have analyzed the determinants of profitability of Indian Public Sector Banks which reveals four independent variables that affect the net profit: Non-performing assets, Credit Deposit Ratio, Net Interest Income and Operating Expenses. We have used the Multiple Regression Model for its analysis. We found out that, only two of these independent variables i.e. Credit Deposit Ratio and Net Interest Income affect the net profitability of Indian Public Sector Banks in a major way.