Commercial Banks in India: Profitability Growth and Development

Commercial banks in India have witnessed significant developments and rapid strides of progress in the post-nationalisation and post-reform period. Indian banking, as a matter of fact has undergone a metamorphosis in the very concept, percept and outlook. Explosive growth coupled with functional diversification in consonance with the national objectives and priorities has been the hallmark of this phenomenal transformation. The massive and speedy expansion and diversification of banking scenario has not been without its strains. One of the main areas of concern is the erosion of profitability. The profitability of the banking system has been subject to severe pressures since last few years due to global economic meltdown. Despite facing stiff completion and global financial crisis, the Indian banking system has given a good account of it and eventually emerged as an effective instrument of socio-economic change. Against such a backdrop, the present work is an attempt to examine measure and analyse the profitability trends of the Indian banking sector over the period 2001 to 2015.