Volume : 2, Issue : 5, May - 2013

Factors Influencing the Profitability of Selected Nationalised Banks in India

S. Rajendran, Dr. R. Saravan

Abstract :

The banking industry is slated for growth in future with a more qualitative rather than quantitative approach. Objectives of this study, 1. To analyse the factors which determine the financial position of the banks. 2. To analyse the Profitability position on selected variables of the Nationalised banks in India and . To present the findings and offer suitable suggestions to improve the financial position of the Nationalised banks in India. Methodology of this study, The data for the study have been collected mainly from the secondary sources comprising various books, periodicals, journals, etc. Further, for the purpose of analysis, detailed information is collected mainly from the various volumes of the “Statistical Tables Relating to Banks in India” covering the period from 2001 to 2011. Findings of this study, ). From the above factor matrix it is found that coefficients for factor–I have high absolute correlations with variable R2 (Other Assets to total Asset) ,A3(NPA to Advances), C1 (Ratio of Advances to Total Assets), A2(Return on Advances )R1 (Investment to Assets) and E3 (Operating Profit to total Assets)that is, .964, .948, .944, 0.939, .907 and 0.906 respectively. Similarly factor–II has high absolute correlation with variable L1(Deposits to total assets) and C3 (Govt.Secu. To Investment)).Conclude this study To conclude, no single factor greatly influence the financial performance in the case of Nationalisation bank in India.