1Assistant Professor, Department of Business Administration, Annamacharya Institute of Technology and Sciences (Autonomous), Rajampet, Kadapa (Dist.), Andhra Pradesh, India-516126
2Assistant Professor, Department of Business Administration, Annamacharya PG College of Computer Studies, Rajampet, Kadapa (Dist.), Andhra Pradesh, India-516126
EVA is used for assessing Economic value of the firm. With, the help of EVA it is very useful to determine the amount of capital shareholder has committed in the company throughout the life span of its existence and also including earnings retained that have earned in the business. EVAis a performance metric that calculates the creation of shareholder value and it helps to increase productivity and profits. In the present study, an analysis is made on the financial performance of service sector Industry with the help of Economic Value Added Approach. From the last two decades, many of the researchers done the research work on EVA and accounting measures, but no one focus on service sectors performance. So, in these we take some selected Banks in INDIA which are listed in BSE. A sample period of 2009–2013 was considered for the study. The financial performance of the Banking industry was critically examined by using Statistical tools such as mean, and rank correlation used in the study. From the findings it is found that there is a strong positive correlation exist between EVA and different criteria indicates such as Return on Assets, Net Profit, Profit per Employee, Interest income and Spread have close similarities to the ranking under EVA. Except deposit per employee does not match with the ranking under EVA.
Banking Industry, Economic Value Added (EVA), Mean, Rank Correlation
