A comparative study of profitability of public, private and foreign Banks in India using camel approach

The aim of the present study is to examine the impact of bank specific variables on profitability of Indian commercial banks over the time period from 2005 to 2017. The bank profitability is measured by return on assets (ROA) and return on equity (ROE) as a function of bank specific selected variables. Multiple regression analysis has been used and the results show that operating profits, capital adequacy and profit per employee have a positive and significant effect on banks’ profitability. However, ratio of NPAs to total assets and net interest margin has a negative and significant impact on banks’ profitability.