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Asian Journal of Research in Banking and Finance
Year : 2017, Volume : 7, Issue : 2
First page : ( 61) Last page : ( 68)
Online ISSN : 2249-7323.
Article DOI : 10.5958/2249-7323.2017.00008.6

Financial Stability of Public Sector Banks in India

Dr. Tawar Arun*

Associate Professor, D.S.M. College of Arts, Commerce & Science, Parbhani, India

*Assistant Professor, SRTM University, Nanded, India

Online published on 13 February, 2017.

Abstract

Savings are deposited, on that basis Loans are provided to people for their consumption, at the same time banks also create money and expand its business. At present, Competition among public, private and foreign banks are being increased by virtue of Globalisation. Every bank is trying to attract our client through excellent services. There is no doubt that private bank such as ICICI and HDFC are the topmost banks in India. However, SBI and its associate's banks are also in topmost position. Similarly, such type of competition it can be also within public or private banks in India. There are total 27 public banks in India. Therefore, this paper reflects on whether all banks in public sector are growing in same percentage or not. It also focuses on year-wise variations in selected key ratios. The article considered some key ratios like, credit deposit ratio (CDA), capital adequacy ratio (CAR), return on assets (ROA), NPA (non performing ratio etc.) for analyzing its ability to create optimal use of available resources, require capital for expansion, quality of loans and profit generated by banks. Therefore, The paper analysis all above key ratios of Public banks in India by using statistical tools (Mean, Standard deviation and Analysis of Variance etc.).

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Keywords

(Credit deposit ratio (CDA), capital adequacy ratio (CAR), return on assets (ROA), NPA (non performing ratio etc.).

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