Profitability in indian public sector banks: A case study of sbi and its associates

The nationalization of the banks has given rise to variety of new obligations in the area of social banking. The major achievements of the nationalized banks have led to the growth of economy, employment generation and broadening the base of income distribution. After the nationalization of banks, the major concern was the productivity and profitability of public sector banks. The banking system must be on a sound footing to instill public confidence and also to make banks capable of discharging their social responsibility. New economic policy of 1991 announced by Narasimhan Rao Government brought with it challenges and opportunities in all field of economic activities including banking. Indian banks had to face immense competition after the new economic policy of 1991. This paper, thus attempts to show how the profitability SBI & Associates is affected during the last five years. Overall profitability position of the bank is satisfactory during last five years. The study shows all factors taken to analyze profitability are showing increasing trend. But still SBI & Associates needs to gear itself to meet the complex changes and develop such policies & strategies to meet competition effectively and efficiently.