1Research Scholar, Department of Business Administration, Aligarh Muslim University, Aligarh, Uttar Pradesh, India. Email id: atifghayas91@gmail.com
2Professor, Department of Business Administration, Aligarh Muslim University, Aligarh, Uttar Pradesh, India, Email: javedmba@hotmail.com
Online published on 20 September, 2018.
The study aims to empirically examine the nature of complex relationship between capital structure decisions of the firms and their profitability using a sample of 18 Indian Banks listed on BSE during the years 2013 to 2017. Regression Analysis has been used to study the relation between Capital Structure variables (Debt to Equity and Debt to Total Funds) and Profitability variables (Net Profit Ratio, Return on Equity, Return on Capital Employed, Net Interest Margin). The findings of the study indicates that debts has a major share in the capital structure of Indian banking Industry. It was also found that Capital structure variables Debt to Equity and Debt to Total Funds ratio has a significant negative relationship with the Profitability ratios.
Capital structure, Profitability, India, Banking, Debt
