Since the process of liberalization and reforms in the financial sector were introduced in 1991, banking sector has undergone major transformation. The underlying objectives of the reform were to make the banking system more competitive, productive and profitable. The key to success in the competitive environment is increased productivity and profitability. Indian banks, especially State bank of India and its associates and the public sector banks, are lagging far behind their competitors in terms of both productivity and profitability. Hence, this research has analyzed the profitability and productivity of SBI and its Associate banks in India during 2007–08 to 2011–12. In order to measure bank profitability and productivity, it has utilized the ratio analysis and CAGR. The paper is an attempt to make comparison within SBI and its subsidiaries in terms of profitability and productivity.
SBI, Associate Banks, Productivity, Profitability
