Identifying impact of internal factors on profitability of selected Indian Banks

Banks are considered as the backbone of any economy. Productivity and Profitability of banks enhances the economic health of the country. After Liberalization, Privatization and Globalization of Indian economy, there is paradigm shift in entire country. The waves has also affected banking sector in positive way. The bank specific internal factors are particular to a given institution, thus the internal factors that determine profitability in one bank are different from other banking institution in India. The present study is an attempt to evaluate the internal factors affecting profitability of ten major banks in India. From this study, it is found that PCTA, GNPTA and FDRTD are the important variables affecting the profitability in case of overall banking sector and private sector banks in India. In case of Public sector banks OPEXTA is most important variable affecting profitability. PCTA is major factor affecting profitability of all the selected banks except Dena bank, IDBI bank and HDFC bank.