Determinants of profitability: A study on state cooperative banks in northeast India

Profitability became one of the most important study areas in recent years. High profitability is important to sphere the operation success of any institutions in business environment. It is a complex concept that is determined by many external and internal factors. In recent years, profitability in particular and financial performance as a whole is low in cooperative sector. The present study evaluates the different variables that are determining profitability and evaluates its effects among state cooperative banks in Northeast India. Analysis is done through correlation matrix and regression analysis. It was found that there is significant relationship between debt equity ratio and non-performing assets ratio with profitability. Further, it was found that selected determinants of profitability were statistically significant in predicting the level of return on equity.