Abstract:
Abstract
Purpose: This study aims to evaluate the performance of selected private sector
Banks in India. The aim is also to study the profitability performance of these
selected banks.
Approach/Methodology/Design: Eight private Banks were selected as a sample
for the study. The statistical tools employed in the study include Minimum and
Maximum Net Profit Ratio, Descriptive Statistics and One-Way ANOVA test for the
evaluation of performance of Banks. The period for the study is from 2011-12 to
2018-19, and this study is totally based on secondary data.
Findings: The results of the study reveal that there is a significant difference of Net
Profit of the selected banks. The financial performance of HDFC Bank is
continuously in a good condition due to the high profit earned and the proper
management that is employed. The results indicate that Yes Bank is in a
deteriorating financial position because of governance issues, false assurance to
customers, non-serious investors, non market-led revival in sight, outflow of
liquidity, and non-disclosure practices. Axis Bank and ICICI Bank are slowly
declining within the market. Jammu and Kashmir Bank suffered losses in the year
2016-17 due to the tune of Rs 16,000 crores during the five months long unrest in
the Kashmir valley.
Practical Implications: In today’s scenario, most of the banks have more Non Performing Assets. Due to this condition, many banks go to liquation and
merger/acquisition. This paper attempts to examine the current conditions of
selected private sector banks in India, assisting in presenting statistical analysis
that will be of use to investors as well as management teams of the banks.
Originality/value: Nowadays, Banking sector is one of the fastest growing sectors
and huge funds are invested in banks. The banking system is becoming more
complex and therefore there is a strong need to evaluate the performance of the
banks. The originality in this study lies in the attempt to provide up-to-date
assessment of eight top banks in India.
