Determinants of net interest margin of public and private sector banks in India

This paper studies empirically the determinants of Indian commercial banks Net interest margins from 2007-8 to 2011–2012. Here in this paper 41public as well as private banks are being studied under five principal variables: operating expenses, credit risk, economic growth, inflation and bank concentration ratio. In this paper secondary data is been used that is annual reports of banks. The estimation results show that bank concentration ratio has positive significant on the Indian banks.