ZENITH International Journal of Business Economics & Management Research
  • Year: 2018
  • Volume: 8
  • Issue: 4

Shareholders’ Value in Indian Private Sector Banks-An Analysis

  • Author:
  • K. Abirami1, M. Nagamani2
  • Total Page Count: 11
  • Page Number: 70 to 80

1Assistant Professor, Department of Commerce, Avinashilingam Institute for Home Science and Higher Education for Women, Coimbatore

2Associate Professor, Department of Commerce, Psgr Krishnammal College for Women, Coimbatore

Online published on 2 May, 2018.

Abstract

Measuring the performance of a bank is a tough task for the management as it requires expert knowledge and skill to select the parameters that state the true economic profits of the business. Right formulation and implementation of economic measurement tools would be the best business management strategy to analyse the performance of the banks’ in terms of shareholder value creation. The study examines the value creation of select private sector banks in India for a period of ten years from 2005–06 to 2014–15. Secondary data have been collected from Capitaline plus Database and RBI reports. Economic measures, namely, Economic Value Added, Refined Economic Value Added, Market Value Added and Total Shareholders’ Return are employed to analyse the wealth maximization in the select banks.

Keywords

Banks, Shareholders value, Economic measures