An analysis of financial performance of selected Indian commercial banks

Indian banking sector, which withstood the turmoil of the global financial crisis during 2008–09, started showing some signs of stress during the subsequent period. The present study was done to examine the importance of financial performance of the commercial banks during the period of 2000 to 2011. The study applied key profitability ratios for assessing the financial performance of the commercial banks. Financial stability of the banks plays a crucial role in the growth of the banks. To accomplish this objective a regression analysis between Earnings before interest and tax and different factors affecting banks profitability was done. The study reveals that the during the period Return on Assets which indicates how efficiently the company is using its total assets shows an increasing trends in the last five year from 2007 to 2011. Return on Net Worth shows an increasing trend from 2007 onwards with very poor performance in 2006. The Capital adequacy ratio has strong negative relation with Net Assets to RONW ratio and NPA to net assets ratio.