Management Today
  • Year: 2016
  • Volume: 6
  • Issue: 4

An Empirical Study of the Impact of Growth Rate of Banks on Bank Profitability and Productivity

1Alumnus, MFM programme, Department of Management and Commerce, Sri Sathya Sai Institute of Higher Learning, Brindavan Campus, Kadugodi Post, Bengaluru, 560067, gokulsrini07@gmail.com

2Associate Professor, Department of Management and Commerce, Sri Sathya Sai Institute of Higher Learning, Brindavan Campus, Kadugodi Post, Bengaluru, 560067

*Corresponding author nsivakumar@sssihl.edu.in, Ph: 9448928884

Online published on 15 February, 2019.

Abstract

Banks are a vital component of the healthy functioning of any economy. This study attempts to understand the growth of banks in India in terms of its business and analyses whether the growth has resulted in better profitability and productivity. Based on a 10 year analysis of data of all scheduled commercial banks in India, the study shows that while bank growth has impacted productivity, it has not been translated into an impact on profitability of banks. Appropriate suggestions have been provided based on the findings of the study.

Keywords

Impact of growth rate, banks, bank profitability and productivity