Asian Journal of Research in Banking and Finance

  • Year: 2013
  • Volume: 3
  • Issue: 2

Competition among Indian banks - A boon or bane

  • Author:
  • R.K. Uppal, Amit Juneja
  • Total Page Count: 24
  • DOI:
  • Page Number: 49 to 72

* Principal Investigator, UGC Financed Major Research Project, D.A.V. College, Malout, Punjab, India.

** Research Scholar, Department of Economics, Panjab University, Chandigarh, India

Abstract

After the banking sector reforms, competition among banks has increased many times. This competition has proved to be beneficial for the customers because it is mainly due to this competition that they are getting improved services and better facilities at nominal rates than before. But on the other side, due to this the bank groups are struggling to maintain their position in the banking industry. In order to analyze, whether there are significant difference in performance of different bank groups in this competitive environment as regard to their profitability parameters i.e. their deposits, investments, advance, assets, interest income, other income, interest expenditure and other expenditure. t-Ratios were computed to see significant difference on selected parameters between different bank groups. The study concludes that there is significant difference exists on six out of eight selected parameters except other income and other expenditure between public sector and private sector bank group. There is significant difference on all the selected parameters between public and foreign sector bank group. There is significant difference exists on seven out of eight selected parameters except other income between private and foreign sector bank group.

Keywords

Advances, Assets, Deposits, Interest Expenditure, Interest Income, Investments, Other Expenditure, Other Income