Professor Department of Management (MBA) JSPM's Rajarshi Shahu College of Engineering, Tathawade, Pune-411033, Maharashtr
Online published on 4 August, 2018.
Financial intermediaries play a key role in the economic development as huge funds are needed to support economic activities. In India, the Public Sector Banks (PSBs) among all financial intermediaries are the integral part of the Indian financial system and they may be characterized as the resilient financial intermediaries as they stood to the testimony of the financial meltdown in the recent past. In general, the banks mobilize, lend and invest the funds. These activities are to be carried on viably and consistently since there exists a cut throat competition in the market. The main objective of the banks is to earn income by striking a healthy balance between incomes and expenses. This article analyzes the operating dimensions i.e. incomes, expenses and profits of the ten selected PSBs for the period from 2011–2015. The objective of the study is to analyze the consistency in performance of the selected banks with regard to their key operating dimensions and to award an overall rank based on the average t-Test score of all ranks secured for each operating dimension. The consistency in performance is assessed with the help of two-tailed t-Test 5–1 (n-1), 0.05 (5%) = 2.776. The analysis reveals that Allahabad Bank (out of 10 PSBs) has emerged as the most consistent overall performer in respect of all operating dimensions during the study period. The main limitation of this study is that the stakeholders may or may not consider the consistency in performance of the selected PSBs while dealing with them since these banks do not represent the whole Indian banking industry as well as financial system.
Operating Dimensions, Interest Income, Other Incomes, Interest Expense, Manpower Cost, Selling and Administrative Expenses, Miscellaneous Expenses, Net Profit, Earnings Per Share, Equity Dividend (%), Book Value Per Share
