ue to challenges faced by the banking industry, the investors are facing difficulty to determine the most profitable and best performing banks. This study primarily focuses on determining the profitability position of the selected private sector banks. Hence, there is a need to study the fundamentals of private sector banks.
Fundamental analysis examines the key financial ratios of the banks and helps in determining the profitability position of private sector banks. Determining the profitability position of the private sector banks helps the investors to identify the best investment decision.
LITERATURE REVIEW
P. Hanumantha Rao & Dutta in their research paper “ Fundamental Anlaysis Banking Sector in India (2014)” have examined the fundamentals of the banking sector in India. They considered operating profit margin, net profit margin, return on equity, earnings per share, price earnings ratio, dividend per share and dividend payout ratio for a period of six years starting from 2006 to 2012 for three major banks.
Sana Samreen has analyzed the overall banking industry with the help of Porter’s five forces model in her research study “Analysis of Indian Banking Industry with Special Reference to ICICI Bank (2014). The study also concentrated on the various developments, challenges and opportunities in the banking industry in India. The author has concentrated on commercial banks in India and examined the upcoming challenges and opportunities to reap profits.
Bhattacharya, A., Lovell, C.A.K., and Sahay P. in their study, “The impact of liberalization on the productive efficiency of Indian commercial banks (1997)” have examined the productivity efficiency of 70 Indian commercial banks during 1986 to 1991. Using Data Evolvement Analysis (DEA), they have concluded that public sector banks are the most consistent and efficient banks which are followed by the foreign banks and the private banks in India.
