Relationship between Liquidity & Profitability Management of Nationalised and Private Banks of India Dr. Kumar Dharmendra*, Mrs. Agarwal Charu** *Assistant Professor, Department Of Commerce, Gov. PG College, Lohaghat **Research Scholar, Department Of Management, Kumaun University, Nainital Online published on 17 August, 2013. Abstract Banking sector is one of the fastest growing sectors in India. Today's banking sector become more complex. Sound financial health of a bank is the guarantee not only to its depositors but is equally significant for the shareholders, employees and whole economy as well. As a sequel to this maxim, efforts have been made from time to time, to measure the financial position of each bank and manage it efficiently and effectively. In this paper, an effort has been made to evaluate the financial performance of the banks listed in Nifty 50. Analysis on the basis of Liquidity & profitability is done and the major emphasis is on establishing a relationship between the two most important indicators of financial performance which are profitability & Liquidity. For this purpose various liquidity ratios has been calculated, technique of correlation is been used and t-test has been applied to come to a conclusion. Various liquidity ratios depicts the liquidity position of banks and application of t-test shows that the relationship between liquidity & profitability is insignificant in most of the cases with certain exceptions. Top Keywords financial performance, Liquidity analysis, Profitability analysis, Rank correlation, t-test. Top |